Question

The debt/capital ratio of Adidas AG is closest to:

1) 0.152
2) 0.153
3) 0.154
4) 0.155

Answer 1

To calculate the debt/capital ratio of Adidas AG, you need to divide the company's total debt by its total capital.

Step-by-step explanation:

The debt/capital ratio of Adidas AG can be calculated by dividing the total debt of the company by its total capital. The debt/capital ratio indicates the proportion of a company's financing that comes from debt. To calculate the ratio, you need to know the values of total debt and total capital. Once you have these values, divide the total debt by the total capital to get the debt/capital ratio.

Let's assume the debt of Adidas AG is $100 million and the total capital is $650 million.

Debt/ Capital Ratio = Total Debt / Total Capital = $100 million / $650 million = 0.1538 (approx.)

So, the debt/capital ratio of Adidas AG is closest to 0.153. Therefore, the correct answer is option 2) 0.153.