You are provided with the following information: Total equity = $ 12,500,000 Debt-to-equity ratio = 0.75...

Question

Question

You are provided with the following information:

Total equity = $ 12,500,000

Debt-to-equity ratio = 0.75

Based on this information, the total debt of the concerned balance sheet is equal to....

$9,735,000

$9,357,000

$8,375,000

None of these

Answer 1

Answer #1

Debt-to-equity ratio = Total Debt/Total Equity 0.75 = 0.75*12500000 9375000 = 11 Total Debt/12500000 Total Debt Total Debt To

Answer 2

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