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Wilson R’s has 10,000 shares of common stock outstanding at a market price of $35

O A. $5,040.41 O B. $5,143.32 C $5,707.07 D. $6,025 27 e E. $6,279.07 QUESTION 10 Suppose a firm has 15 million shares of com
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Answer #1

Market value of common stock = 15,000,000 * 10 = 150,000,000

Market value of debt = 105% of 68,000,000 = 71,400,000

Debt-to-equity ratio =Debt / equity

Debt-to-equity ratio = (71,400,000 / 150,000,000) * 100

Debt-to-equity ratio = 47.6%

Note: Not sure why have you given info regrading Wilson. If you need more help, please put it in comments.

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