Compute webbs debt ratio and interest-bearing debt ratio

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Reference no: EM131881463

Questions

a. Compute Webb's debt ratio and interest-bearing debt ratio.

b. If the market value of Webb's equity is $2,063,000 and the value of the firm's debt is equal to its book? value, assuming excess cash is zero, what is the debt-to-enterprise-value ratio for? Webb?

c. If you were a bank loan officer who was analyzing whether or not to loan more money to Webb, which of the ratios calculated in parts a and b is most relevant to your analysis?

1) Webb's debt ratio is %

Accounts payable $522,000

Short-term debt $247,000

Current liabilities $769,000

Long-term debt $741,000

Shareholders' equity $519,000

Total $2,029,000

Reference no: EM131881463

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