Managerial Finance

mjdrew · #1 Feb 16, 2006, 08:52 AM

Beacon, Inc has a profit margin of 14 percent, capital intensity ratio of 0.74, and ROE of 24.38 percent. What is the firm's debt-equity ratio?

If anyone could tell me how to do this problem, and not just the answer, that would be great

AMT · Feb 25, 2007, 06:28 PM

I think this is what you have to do:

Use this formula to get the debt to equity ratio

= total liabilities
shareholders equity

Just plug in the numbers and divide, your answer should be a percentage.
Hope this helps



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