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Thrillville has $39.3 million in bonds payable. One of the contractual agreements in the bond is that the debt to equity ratio cannot exceed 2.0. Thrillvilleâs total assets are $79.3 million, and its liabilities other than the bonds payable are $9.3 million. The company is considering some additional financing through leasing.

Calculate total stakeholder equity.

Answer :

hyderali230

Answer:

$30.70

Explanation:

Total Debt = Bond Payable + Other Liabilities = $39.3 + $9.3 = $48.6

Accounting equation shows that assets of a business are funded from two sources Equity and Liabilities. In this question the $79.3 Asset value is the sum of the $48.6 of Liabilities and equity of the company.

As per Accounting equation

Total Assets = Equity + Liability

$79.30 = Equity + $48.60

Equity = $79.30 - $48.60 = $30.70

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