Corning Consumer's total assets equal $360 million.The book value of Corning's equity is $180 million.The market value of Corning's equity is $ 250 million.The book value of the company's interest bearing debt is $120 million.Compute Corning's Debt Ratio and Debt to Value Ratio.

Question

Quizplus · Accepted Answer

The Answer is Debt Ratio = 180,000,000/360,000,000 =.50 Debt to value ratio = $120,000,000/ ($120,000,000 + 250,000,000)= .324

Corning Consumer's Total Assets Equal $360 Million