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A Company Had a Debt-To-Equity Ratio of 1

question 37

Essay

A company had a debt-to-equity ratio of 1.55 before issuing convertible bonds.This ratio included $500,000 in equity.The company issued convertible bonds.The value reported for the bonds on the balance sheet is $180,000 and the conversion rights are valued at $22,000.
Requirement:
After the issuance of the convertible bonds,what is the value of the debt-to-equity ratio?


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Young human beings, typically defined as persons between infancy and puberty.

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Describes the growth pattern of human beings, where development starts from the head and progresses towards the feet.

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A pattern of development that describes how growth starts at the center of the body and moves towards the extremities.

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The predictable sequences of physical, cognitive, and social development that individuals follow as they age.

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