Accounts payable $500,000 Short-term debt $250,000 Current liabilities $750,000 Long-term debt $750,000 Shareholders' eq
Posted: Sun May 29, 2022 6:23 pm
Accounts payable $500,000 Short-term debt $250,000 Current liabilities $750,000 Long-term debt $750,000 Shareholders' equity $500,000 Total $2,000,000
(Related to Checkpoint 15.1) (Calculating debt ratio) Webb Solutions, Inc. has the following financial structure: EEE a. Compute Webb's debt ratio and interest-bearing debt ratio. b. If the market value of Webb's equity is $2,000,000 and the value of the firm's debt is equal to its book value, assuming excess cash is zero, what is the debt-to-enterprise-value ratio for Webb? c. If you were a bank loan officer who was analyzing whether or not to loan more money to Webb, which of the ratios calculated in parts a and b is most relevant to your analysis?