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B/S = .65 = B + S / S = 1.65 = S / B + S = 1 / 1.65 = S / V = .606 = We

Equals the weight of equity = We

1- We = Wd = Weight of debt.

Now plug in the return on both debt and equity and u will have it

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Breckenridge Ski Company has total assets of 422235811 and a debt ratio of 29.5 percent Calculate the companys debt-to-equity ratio and the equity multiplier?

What is given is: total assets = $422,235,811 Debt ratio = 29.5% Find: debt-to-equity ratio Equity multiplier Debt-to-equity ratio = total debt / total equity Total debt ratio = total debt / total assets Total debt = total debt ratio x total assets = 0.295 x 422,235,811 = 124,559,564.2 Total assets = total equity + total debt Total equity = total assets - total debt = 422,235,811 - 124,559,564.2 = 297,676,246.8 Debt-to-equity ratio = total debt / total equity = 124,559,564.2 / 297,676,246.8 = 0.4184 Equity multiplier = total assets / total equity = 422,235,811 / 297,676,246.8 = 1.418


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how to control debt equity ratio


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How can one determine the Weighted Average Cost of Capital (WACC) for a company"?

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Debt equity ratio tells about what?

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