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?

---

Definitions:

Personnel Department

A division within an organization focused on managing employee-related tasks, such as hiring, training, and addressing workplace issues.

External Concern

Issues or factors outside an organization that affect its operations or decisions.

Health Care Organizations

Institutions that provide medical services, support, and information to the people who need them, including hospitals, clinics, and outpatient care centers.

High-stress

Situations or environments that impose a great deal of pressure and strain on individuals, leading to potential health or mental well-being issues.