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Compute leverage ratios using the book value of equity

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Reference no: EM133124733

Question - Consider the following data and answer the question below.

Balance sheet in book values:

Assets 1500

Total debt 900

Liabilities 1150

Equity 350

Stock price 35

Shares outstanding 100

Is the following statement true or false?

Since this company has positive book equity, it is correct to compute leverage ratios using the book value of equity.

Reference no: EM133124733

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