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Triano Train Transports shows the following on their most recent balance sheet: Current Assets: 1871 Total Liabilities: 1994 Inventory: 458 Net working Capital: 1111 Total Assets: 3007 Total Equity: 1636 Total Debt: 2602 Earnings per Share: 3.22 Market Value: 60.03 You want to identify if the company is highly leveraged and therefore a higher risk for you as an investor. Specifically, you want to find out how much debt the company has in comparison to each dollar of equity. Determine which ratio to use, calculate it and put the number in the answer.

Triano Train Transports shows the following on their most recent balance sheet: Current Assets: 1871 Total Liabilities: 1994 Inventory: 458 Net working Capital: 1111 Total Assets: 3007 Total Equity: 1636 Total Debt: 2602 Earnings per Share: 3.22 Market Value: 60.03 You want to identify if the company is highly leveraged and therefore a higher risk for you as an investor. Specifically, you want to find out how much debt the company has in comparison to each dollar of equity. Determine which ratio to use, calculate it and put the number in the answer.

Cornerstones of Financial Accounting
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter12: Fainancial Statement Analysis
Section: Chapter Questions
Problem 85PSA
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Triano Train Transports shows the following on their most recent balance sheet:

Current Assets: 1871
Total Liabilities: 1994
Inventory: 458
Net working Capital: 1111
Total Assets: 3007
Total Equity: 1636
Total Debt: 2602
Earnings per Share: 3.22
Market Value: 60.03

You want to identify if the company is highly leveraged and therefore a higher risk for you as an investor. Specifically, you want to find out how much debt the company has in comparison to each dollar of equity. Determine which ratio to use, calculate it and put the number in the answer.

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