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Stewart Inc.'s latest EPS was $3.50, its book value per share was $22.75, it had 215,000 shares outstanding, and its debt-to-assets ratio was 46%. How much debt was outstanding? $3,393,738 $3,572,356 $3,760,375 $3,958,289 $4,166,620

Respuesta :

Answer:

Option E is correct $4,166,620 was outstanding

Explanation:

EPS=$3.5

Book value per share=$22.75

Outstanding share=215,000

Total Equity=$22.75*215,000=$4,891,250

Debt Equity ratio=Debt/Total assets

46%=Debt/(Debt+Equity)

0.46*(Debt+$4,891,250)=Debt

Debt-0.46 Debt=$4,891,250*.46

0.54 Debt=$2,249,975

Debt=$2,249,975/0.54=$4,166,620

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