Capital structure analysis

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?(Capital structure analysis) the liabilities and owners' equity for Campbell Industries is found here:

Accounts payable $ 503, 000

Notes payable $ 241, 000

Current liabilities $ 744, 000

Long-term debt $ 1 ,163 , 000

Common equity $ 4 , 879,000

Total liabilities and equity $ 6,786, 000

a. What percentage of the firm's assets does the firm finance using debt (liabilities)? The fraction of the firm's assets the firm finance using debt liabilities is____ ?(Round to one decimal? place)

b. If Campbell were to purchase a new warehouse for $ 1.5million and finance it entirely with long-term debt, what would be the firm's new debt ratio?

Reference no: EM132779969

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