Various capital structures Chaner Enerptses arerey has 15 ma

Various capital structures Chaner Enerptses arerey has $15 maon in total assets and?total,?ty financed contemptating ange ifi ts captai structur·Compuse the amount of deer and eatrit wold be outstanang if the tm were to shtio each ofthe talowing debt ratios 10% 20% 30% 40% 50% 60%.and 90% Oiote The amourt oftotaassets would not change )Inere ? limt tothe debt ratio\'s value? Calculate the capital structure below (Round to the nearest dollar.) Calculate the capital sructure below (Round to the nearest dolar 20% Calculate the capital structure below Round to the nearest dollar) Calculale the capitial sruture beloW (Round to the nearst dollar Calculate the capital sructure below (Round to the nearest dolar Debt Ratio

Solution

Total debts = Debt ratio x Total Assets

Total equity = (1-Debt ratio) x Total Assets or Total Assets - Total Debt

Solution:

Total Assets

Debt Ratio

Total debt = Debt ratio x Total Assets

Total equity = Total Assets - Total Debt

      1,500,000

10%

                   150,000

                1,350,000

      1,500,000

20%

                   300,000

                1,200,000

      1,500,000

30%

                   450,000

                1,050,000

      1,500,000

40%

                   600,000

                    900,000

      1,500,000

50%

                   750,000

                    750,000

      1,500,000

60%

                   900,000

                    600,000

      1,500,000

90%

                1,350,000

                    150,000

Total Assets	Debt Ratio	Total debt = Debt ratio x Total Assets	Total equity = Total Assets - Total Debt
1,500,000	10%	150,000	1,350,000
1,500,000	20%	300,000	1,200,000
1,500,000	30%	450,000	1,050,000
1,500,000	40%	600,000	900,000
1,500,000	50%	750,000	750,000
1,500,000	60%	900,000	600,000
1,500,000	90%	1,350,000	150,000