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    mjdrew's Avatar
    mjdrew Posts: 1, Reputation: 1
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    #1

    Feb 16, 2006, 10:52 AM
    Managerial Finance
    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's Avatar
    AMT Posts: 2, Reputation: 1
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    #2

    Feb 25, 2007, 08:28 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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