liabilities 450,000 Total liabilities 606,000 Common stock and retained ear
Debenture Valuation
A debenture is a private and long-term debt instrument issued by financial, non-financial institutions, governments, or corporations. A debenture is classified as a type of bond, where the instrument carries a fixed rate of interest, commonly known as the ‘coupon rate.’ Debentures are documented in an indenture, clearly specifying the type of debenture, the rate and method of interest computation, and maturity date.
Note Valuation
It is the process to determine the value or worth of an asset, liability, debt of the company. It can be determined by many processes or techniques. Many factors can impact the valuation of an asset, liability, or the company, like:
The balance sheet for Solomon Corporation follows:
Current assets $ 237,000
Long-term assets (net) 752,000
Total assets $ 989,000
Current liabilities $ 156,000
Long-term liabilities 450,000
Total liabilities 606,000
Common stock and
Total liabilities and
Required
Compute the Debt-to-assets ratio
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