If a company had Long-Term Debt of $1,950,000; Shareholders Equity of $2,835,000; and Total Assets of $8,328,000

Finance Dec 26, 2020

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?

Expert Solution

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

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