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3 August, 23:54

Stewart Inc.'s latest EPS was $3.50, its book value per share was $22.75, it had 215,000 shares outstanding, and its debt-to-assets ratio was 46%. How much debt was outstanding? $3,393,738 $3,572,356 $3,760,375 $3,958,289 $4,166,620

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  1. 4 August, 00:58
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    Option E is correct $4,166,620 was outstanding

    Explanation:

    EPS=$3.5

    Book value per share=$22.75

    Outstanding share=215,000

    Total Equity=$22.75*215,000=$4,891,250

    Debt Equity ratio=Debt/Total assets

    46%=Debt / (Debt+Equity)

    0.46 * (Debt+$4,891,250) = Debt

    Debt-0.46 Debt=$4,891,250*.46

    0.54 Debt=$2,249,975

    Debt=$2,249,975/0.54=$4,166,620
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Home » Business » Stewart Inc.'s latest EPS was $3.50, its book value per share was $22.75, it had 215,000 shares outstanding, and its debt-to-assets ratio was 46%. How much debt was outstanding? $3,393,738 $3,572,356 $3,760,375 $3,958,289 $4,166,620
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