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Homework answers / question archive / If a company had Long-Term Debt of $1,950,000; Shareholders Equity of $2,835,000; and Total Assets of $8,328,000
If a company had Long-Term Debt of $1,950,000; Shareholders Equity of $2,835,000; and Total Assets of $8,328,000. What was the company's ratio of long-term debt to capital?
Long-term debt to capital:
= Debt/(Debt+Equity)
= $1,950,000/($1,950,000+$2,835,000)
= 0.4075
Hence, Long-term debt to capital is 0.4075
