0071768back Global Finance Andrea McDimtt 7S18 851 PM Homew

0071768back Global Finance Andrea McDimtt ? 7S/18 851 PM Homework: Module IV-Practice Exercises: Part B Save Score: 0 of 5 pts 4 of 5 (2 complete) HW Score: 40%, 10 of 25 pts Problem 14-9 (algorithmic) E Question Hep Adamantine Architectonics. Ademantine Architectonics consises of a U.S parent and wholly owned subsidiaries in Malaysia (A-ualaysia) and Mexico (A-Mexico) Selected portions of their non-consolidated balance sheets translated Iinto U.S dolars, are shown in the popup window, ITE What are the debt and equity proportions in Adamantine\'s consolidated balance sheer? What is the debt proportion in Adamantine\'s consoldated balance sheet? »% (Rondtotwo deemal places.) Data Table A-Mexico (aceounts in pesos) A-Malaysia (accounts in ringgits) Long-term debt RM10 800.000 Long b0m dett RM12,600,000 Shaneholders equty P526,100,000 PS98,600,000 Nonconsolidated Balance Sheet-Selected ltoms Only $10,000.000 00.000 6000,000 Parent long-lorm debt investment in subsidiaries n A-Malaysia 53,50000 Rutained eaming 6800,000 Retained earnings Cuent exchange ranes Malaysia PS14 505 Print Done Enter your answer in the answer box and then cick Check Answer Clear Al O Type here to search

Solution

Debt Proportion :

Malaysian ringgit debt (RM converted To US$) = $3,000,000

Mexican peso debt (PS converted to US$)    = $1,800,000

parent company debt = $10,000,000

Total debt    = $14,800,000

Equity proportion ($4,000,000 + $16,000,000) = $20,000,000

Total capital ($20,000,000 + $14,800,000)    = $34,800,000

Debt proportion percentage is ($14,800,000 / $34,800,000) = 0.425 or 42.5%