Fubuki – December 2010

This topic has 1 reply, 2 voices, and was last updated 7 years ago by John Moffat.

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May 27, 2019 at 4:58 pm #517563
amcphail
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Hello John,

Thank you for your lectures.

Please can you advise why debt to equity is assumed to be 1?

Equity = 15m shares * 2.53 = 37,950
Debt = 40m bonds /100 * 94.88 = 37,952.
Total = 75,902
resulting in roughly 50% debt & 50% equity, not equal parts both (which I assume is which 1 means).

Many thanks
May 28, 2019 at 7:42 am #517614
John Moffat
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But if the debt and equity amounts are the same, then debt divided by equity will equal 1.
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