How did they round this number off. Value debt310 million +110 value equity million=.738=73.8%
Then Value Equity over Value Of Debt +Value of Equtiy
$310 million + 110 million=0.262=26.7%
How did they get these number
To understand how the numbers were calculated, let's break it down step by step.
First, we have the equation: Value Debt 310 million + Value Equity 110 million.
To find the percentage of each component (Value Debt and Value Equity), we divide each component by the sum of both components:
Value Debt / (Value Debt + Value Equity) = 310 million / (310 million + 110 million) = 310 million / 420 million = 0.738
Value Equity / (Value Debt + Value Equity) = 110 million / (310 million + 110 million) = 110 million / 420 million = 0.262
Now, to express these fractions as percentages, multiply each fraction by 100:
Value Debt percentage = 0.738 * 100 = 73.8%
Value Equity percentage = 0.262 * 100 = 26.2%
Therefore, the rounded-off numbers for the Value Debt and Value Equity percentages are 73.8% and 26.2%, respectively.