Homework Answers
Long-term debt-equity ratio = 0.59
Long-term debt = 0.59 * Equity
Equity = $1,800,000
Long-term debt = 0.59 * 1,800,000 = $1,062,000
Total long-term capital = Long-term debt + Equity
Total long-term capital = 1,062,000 + 1,800,000
Total long-term capital = $2,862,000
Long-term debt = $1,062,000
Debt to total long-term capital = 1,062,000/2,862,000
Debt to total long-term capital = 0.3710691824
Debt to total long-term capital = 37.11%
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