Capital structure analysis-liabilities and owner equity

Reference no: EM1336704

Capital Structure Analysis - the liabilities and owner's equity for Campbell Industries is below.

Accounts payable: $468,000
Notes payable: $258,000
Current liabilities: $726,000
Long-term debt: $1,101,000
Common equity: $4,654,000
Total liabilities and equity: $6,481,000

a) What percentage of the firm's asset does the firm finance using debt (liabilities)? The fraction of the firm's assets that the firm finances using debt is __% (round to one decimal place).

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

Reference no: EM1336704

Questions Cloud

Contingency plan around risk assessment : Would help a business to form a sound contingency plan around those risk.

Explain high performance work system : Explain High Performance Work System and Assume for a moment that you have just been promoted to Director of Marketing for a medium size consumer products company

How can using more debt impact a firm''s capital structure : How can using more debt impact a firm's capital structure? Discuss the trade-offs between incremental IPO proceeds and debt financing.

Explain marketing 4ps and marketing mix : Explain Marketing 4Ps and marketing mix and How are the goods or services produced in a firm differentiated

Capital structure analysis-liabilities and owner equity : Find out percentage of the firm's asset does the firm finance using debt (liabilities)? The fraction of the firm's assets that the firm finances using debt is

Explain the types of operations considerations : Discuss and explain the types of operations considerations

What dependencies there may be : For each one justify why you would select the particular file format and what dependencies there might be.

Local and capital structure : Why might a firm use a "local" capital structure at the particular subsidiary which differs substantially from its "global" capital structure?

Explain three marketing inefficiencies : Explain Three Marketing inefficiencies and Lack of understanding of or adjustment to the marketing environment

User Account

All Pages