Below are 2005 and 2006 balance sheets of Hasbro, Inc. (numbers are in thousands of dollars): The market value of Hasbro's shares was $27.25 a share at the end of 2006 and $20.18 a share at the end of 2005.
-Refer to the information above. Hasbro's financial debt-to-capital book value ratio in 2006 was

Question

Below are 2005 and 2006 balance sheets of Hasbro, Inc. (numbers are in thousands of dollars):    The market value of Hasbro's shares was $27.25 a share at the end of 2006 and $20.18 a share at the end of 2005.
-Refer to the information above. Hasbro's financial debt-to-capital book value ratio in 2006 was

Quizplus · Accepted Answer

Financial debt-to-capital book value ratio = (total debt / total debt + total equity)
At the end of 2006, total debt = $296,500 and total equity = $918,700, therefore financial debt-to-capital book value ratio = (296,500 / (296,500 + 918,700)) = 0.2448 or 24.48%. Rounded to one decimal place, the answer is B) 24.7%. The financial debt-to-capital book value ratio is calculated as total debt divided by the sum of total debt and total equity.

For 2006: 
Total debt = $825,945 + $9,600 = $835,545 
Total equity = $2,558,369 
Debt-to-capital book value ratio = $835,545 / ($835,545 + $2,558,369) = 0.247 or 24.7%

Therefore, the answer is B.

Below Are 2005 and 2006 Balance Sheets of Hasbro, Inc