Reference no: EM132779969
?(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?