For the fiscal year ending December 2015, ExxonMobil had a book value of $112189 million in long-term liabilities and a book value of $164382 million in total stockholder equity.
What was ExxonMobil's book debt-to-equity ratio? Do not round at intermediate steps in your calculation. Express your answer in decimal form to three decimal places.
A firm's capital structure describes the composition of debts versus equity in financing the firm's total assets. A commonly used statistics for describing capital structure is the debt-equity ratio, which is the ratio of value of debt to the value of equity.
Answer and Explanation:
The book debt-equity ratio is 0.68.
The book debt-equity ratio is the ratio of the book value of debt to the book value of equity, i.e.,
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fromChapter 15 / Lesson 1
In this lesson, we'll define capital and a firm's capital structure. We'll also discuss the costs associated with each component in the capital structure and learn about the concept of risk and return.