Ask Experts Questions for FREE Help !
Ask
    mrapach's Avatar
    mrapach Posts: 2, Reputation: 1
    New Member
    		  
    #1

    Nov 18, 2008, 06:14 AM
    Debt-to-Equity Ratio Calculation
    I need to calculate the debt-to-equity ratio based on the following information listed below:

    Debt Ratio (Book-based) = 72%
    TIE = 3.5
    Bond Rating (S&P) = BB-
    Debt-to-Equity Ratio =??
    SW123's Avatar
    SW123 Posts: 1, Reputation: 1
    New Member
    		  
    #2

    Mar 2, 2009, 03:48 PM
    Debt to Equity Ratio = Debt Ratio/(1-Debt Ratio)
Not your question? Ask your question View similar questions
 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

Financial ratio limitations - current ratio and debt to equity [ 2 Answers ]

Hi, I have a problem which is as follows; Contracts with lenders, such as bonds typically place restrictions on the financial statement ratios. Two commonly used ratios are the current ratio and the debt-to-equity ratio. Why is it that these appear as restrictions, that is, do they protect the...

Constant debt-equity ratio [ 1 Answers ]

Merrillan Motors had earnings of $8 million last year. It made $5 million on investment in projects with positive net present values. Pat Collins owns 20% of the firm’s common stock. Assume that Pat desires no change in proportional ownership of Merrillan and the firm wishes to maintain a constant...

View more questions Search