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