Calculate the value of long-term debt given the following information: total debt = $100,000; debt/equity ratio = 0.40; long-term debt ratio = 0.2308.
A) $75,000
B) $70,000
C) $65,000
D) $60,000
E) $55,000

Name: Calculate the value of long-term debt given the following information: total debt = $100,000; debt/equity ratio = 0.40; long-term debt ratio = 0.2308. A) $75,000 B) $70,000 C) $65,000 D) $60,000 E) $55,000
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Quizplus · Accepted Answer

Long-term debt = Total debt * Long-term debt ratio = $100,000 * 0.2308 = $23,080

Calculate the Value of Long-Term Debt Given the Following Information