another BSAS q- spoiler q40

CFA Level II
#1

where are they getting 94.2% equity, 5.8% debt from? is it the B/S equity is 161,585 and debt is just your LTD 10k so 161,585/171,585? do you not include current liabilities in these sorts of ratios? thx

#2

161585/171585 = .9417 --> 94.2%?

#3

so just to get it straight in my head then, you don’t look at current liabilities, just LT ones for this? b/c it did have current liabilities (an AP I think) at 15k… which if you used would not get this answer. when doing % debt, % eq, is it pretty much assumed you’re talking only LTD? that’s more what i’m asking here. i think i see how they got it, i just didn’t know this was the case if it is.

#4

isn’t justified PB is roe-r/r-g and roe is Ni/eqt? What am I missing here

#5

bump

#6

P/B is roe-r/r-g

#7

but ROE in that problem is NI/Eqt which is 14600/161585 = 9.xx%