Various capital structures Chaner Enerptses arerey has $15 maon in total assets
ID: 2824194 • Letter: V
Question
Various capital structures Chaner Enerptses arerey has $15 maon in total assets and?total,?ty financed contemptating ange ifi ts captai structur·Compuse the amount of deer and eatrit wold be outstanang if the tm were to shtio each ofthe talowing debt ratios 10% 20% 30% 40% 50% 60%.and 90% Oiote The amourt oftotaassets would not change )Inere ? limt tothe debt ratio's value? Calculate the capital structure below (Round to the nearest dollar.) Calculate the capital sructure below (Round to the nearest dolar 20% Calculate the capital structure below Round to the nearest dollar) Calculale the capitial sruture beloW (Round to the nearst dollar Calculate the capital sructure below (Round to the nearest dolar Debt RatioExplanation / Answer
Total debts = Debt ratio x Total Assets
Total equity = (1-Debt ratio) x Total Assets or Total Assets - Total Debt
Solution:
Total Assets
Debt Ratio
Total debt = Debt ratio x Total Assets
Total equity = Total Assets - Total Debt
1,500,000
10%
150,000
1,350,000
1,500,000
20%
300,000
1,200,000
1,500,000
30%
450,000
1,050,000
1,500,000
40%
600,000
900,000
1,500,000
50%
750,000
750,000
1,500,000
60%
900,000
600,000
1,500,000
90%
1,350,000
150,000
Total Assets
Debt Ratio
Total debt = Debt ratio x Total Assets
Total equity = Total Assets - Total Debt
1,500,000
10%
150,000
1,350,000
1,500,000
20%
300,000
1,200,000
1,500,000
30%
450,000
1,050,000
1,500,000
40%
600,000
900,000
1,500,000
50%
750,000
750,000
1,500,000
60%
900,000
600,000
1,500,000
90%
1,350,000
150,000
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