Calculating capital structure? weights

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(Calculating capital structure? weights) Winchell Investment Advisors is evaluating the capital structure of Ojai Foods. ? Ojai's balance sheet indicates that the firm has ?$ 51.33 million in total liabilities. Ojai has only ?$ 41.25 million in? short- and? long-term debt on its balance sheet. ? However, because interest rates have fallen dramatically since the debt was? issued, Ojai's? short- and? long-term debt has a current market price that is 10 percent over its book value or ?$ 45.38 million. The book value of? Ojai's common equity is ?$ 49.54 million but the market value of the equity is currently ?$100.64 million.

What is? Ojai's debt ratio and? interest-bearing debt ratio calculated using book? values? ?(Round to one decimal? place.)

Reference no: EM132288846

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