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Kaye's Kitchenware has a market/book ratio equal to 1. Its stock price is $16 per share...

Kaye's Kitchenware has a market/book ratio equal to 1. Its stock price is $16 per share and it has 4.6 million shares outstanding. The firm's total capital is $135 million and it finances with only debt and common equity. What is its debt-to-capital ratio? Round your answer to two decimal places.

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Answer #1

ANSWER = 45.48%

Total equity = $16 per share * 4,600,000 shares = $73,600,000

Total capital = $135,000,000

Total debt = Total capital - Total equity = $135,000,000 - $73,600,000 = 61,400,000

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