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What would be the firm''s new debt ratio

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Reference no: EM131001336

The liability and owners' equity for Campbell Industries is found here:

A ccount Receivable -$523,000
Notes payable- $247,000
Current Liabilities- $770,000
Long term debt- $1,276,000
Common Equity - $5,041,000
Total Liabilities & Equity - $7,087,000

(a) What percentage of the firm's assets does the firm finance using debt (liability)?

(b) If Campbell were to purchase a nw warehouse for $1.2 million and finance it entirely with long-term debt, what would be the firm's new debt ratio?

The fraction of the firm's assets that the firm fiancé using debt is _____ %

Reference no: EM131001336

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