Calculate the company debt to equity ratio

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Reference no: EM131552443

A company with $50 million in assets is funded with $30 million in equity and $20 million in debt. Last year it made $10 million in net income. 25% of which is paid as dividends. Net income increases at the same rate as assets and the company's current liabilities do not change as the company grows, meaning that it will be funding the growth with equity, debt, or a mix of equity and debt.

1. Calculate the company's debt to equity ratio, taking it to two decimal points (xx.xx%. or 0.xxxx).

Reference no: EM131552443

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