What is the company market value debt-equity ratio

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Problem 1: Edgehill, Inc., has 325,000 bonds outstanding. The bonds have a par value of $1,000, a coupon rate of 6 percent paid semiannually, and 13 years to maturity. The current YTM on the bonds is 5.6 percent. The company also has 10 million shares of stock outstanding, with a market price of $71 per share. What is the company's market value debt-equity ratio?

A. 25.12 percent
B. 34.99 percent
C. 45.77 percent
D. 46.76 percent
E. 47.45 percent

Reference no: EM132965175

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