Reinvestment Ratio

[archived_user]

Hello,
Reinvestment Ratio = CFO / Total Debt
CFO = 1300
However, you have to solve for Total Debt.
Cash paid for P&E: (2,600)
Cash interest received: 700
Cash dividends received: 600
Cash from investing activies: (1,300)
Cash received from debt issuance: 2,000
Cash interest paid: (400)
Cash dividends paid: (600)
Cash from financing activities: 1000
Is Total Debt = Cash Paid for P&E? As the outstanding balnce represents a debt/liability.
Help

 

[archived_user]

I read that reinvestment ratio= CFO/ cash paid for long term assets.
It is the ability to acquire long term assets with CFO.
CFO is 1300 (interest received and dividends received)
CFO is 2600 (PP^E)
Reinvestment ratio= 0.5
As for total debt, i believe it is includes all interest bearing debt (long term debt + current portion of long term debt + short term debt).