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Accounting

Problem:

ABC Corporation has earnings per share of $4 dollar last year and it paid a $2 dividend. Total retained earnings increased by $12 million dollar during the year, and book value per share at year-end were $40. ABC Corporation has no preferred stock, and no new common stock was issued during the year.

Required:

Question: If ABC Corporation year-end debt (which equals to total liabilities) was 120 million. what was the company`s yearend debt/asset ratio?

Note: Explain all calculation and formulas.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91166425

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