Bipolar Beverages total assets equal $360 million. The book value of Bipolar's equity is $180 million. The market value of Bipolar's equity is $ 250 million. The book value of the company's interest bearing debt is $120 million
Compute Bipolar's Debt Ratio and Debt to Value Ratio.
Answer:
Debt Ratio = 180,000,000/360,000,000 = .50
Debt to value ratio = $120,000,000/($120,000,000 + 250,000,000) = .324
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