Ask Question
31 March, 04:42

Debt Management Ratios Tiggie's Dog Toys, Inc. reported a debt-to-equity ratio of 1.75 times at the end of 2015. If the firm's total debt at year-end was $25 million, how much equity does Tiggie's have on its balance sheet?

+4
Answers (1)
  1. 31 March, 05:54
    0
    Equity Tiggie's has on its balance sheet: $14,285,714 (round up $14,29 million)

    Explanation:

    The debt-to-equity (D/E) ratio compares a company's total debt to its total equity and can be used to evaluate how much leverage a company is using.

    Debt-to-equity ratio is calculated by using formula:

    Debt-to-equity ratio = Total debt (or liabilities) / Total equity

    From the formula, Total equity = Total debt/Debt-to-equity ratio

    In Tiggie's Dog Toys, Inc., debt-to-equity ratio of 1.75 times and total debt was $25 million at the end of 2015.

    Total equity = $25,000,000/1.75 = $14,285,714 (round up $14,29 million)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Debt Management Ratios Tiggie's Dog Toys, Inc. reported a debt-to-equity ratio of 1.75 times at the end of 2015. If the firm's total debt ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers