Question

In: Accounting

which of the following debt ratios indicates a risky situation for a company to pay off...

which of the following debt ratios indicates a risky situation for a company to pay off it's debt ? A) 4 B ) 2 c)3 D)5

Solutions

Expert Solution

ekkarill92 answered 1 year ago
Next > < Previous

Related Solutions

Which of the following common profitability ratios indicates the ability of a company to generate income...
Which of the following common profitability ratios indicates the ability of a company to generate income from the funds invested by its common stockholders? a.) Return on stockholders' equity b.) Profit margin c.) Gross profit margin d.) Return on assets
Which of the financial ratios of a company would you refer to in the following situation?...
Which of the financial ratios of a company would you refer to in the following situation? give reasons. -You are thinking of investing $25,000 in the company’s shares What are the basic financial decisions? How do they involve risk-return trade-off?
which one is more risky debt or equity
which one is more risky debt or equity
Which company indicates the strongest ability to pay interest expense as it comes due?
Use the following information from separate companies at hrough f:Net Income (Loss)Interest ExpenseIncome Taxesa.$168,000$72,240$42,000b.162,60066,66658,536c.171,10010,26682,128d.142,80055,69259,976e.109,20032,76041,496f.(47,040)57,3890Compute times interest earned.Which company indicates the strongest ability to pay interest expense as it comes due?
Suppose that under the Plan of Repayment one should pay off the debt in a number...
Suppose that under the Plan of Repayment one should pay off the debt in a number of equal​ end-of-month installments​ (principal and​ interest). This is the customary way to pay off loans on​ automobiles, house​ mortgages, etc.A friend of yours has financed ​$24,000 on the purchase of a new​ automobile,and the annual interest rate is 12% ​(1​%per​ month). a)Monthly payments over a 60-month loan period will be how​ much? b) How much interest and principal will be paid within three...
Fill the following terms (ratios) to relevant spaces: (Market Value Ratios / Profitability Ratios / Debt...
Fill the following terms (ratios) to relevant spaces: (Market Value Ratios / Profitability Ratios / Debt Ratios/ Liquidity Ratios / Efficiency Ratios) a. ____________How well the company is using its assets and liabilities internally. b. ___________ are to determine whether a company's is over-priced or underpriced. c. ____________ can be used to determine the overall level of financial risk a company and its shareholders face. d. ___________ Assess the firm's ability to operate efficiently e. ____________Are used to measure the...
The assignment is to provide specific financial suggestions for how to pay off student debt early...
The assignment is to provide specific financial suggestions for how to pay off student debt early using one or more business decision-making techniques. Please specific and provide specific actions. Thank you
In order to pay off the most recent invoice, a company is scheduled to pay $2000...
In order to pay off the most recent invoice, a company is scheduled to pay $2000 today and $1500 in 6 months. Due to a decrease in sales, the company has chosen to renegotiate the payments. The invoice will be settled by a payment of $1000 in 3 months and a final payment 12 months from now. Determine the size of the final payment if interest is 6% p.a. compounded quarterly.
Firms HL and LL are identical except for their financial leverage ratios and the interest rates they pay on debt.
Firms HL and LL are identical except for their financial leverage ratios and the interest rates they pay on debt. Each has $23 million in invested capital, has $4.6 million of EBIT, and is in the 40% federal-plus-state tax bracket. Firm HL, however, has a debt-to-capital ratio of 60% and pays 12% interest on its debt, whereas LL has a 20% debt-to-capital ratio and pays only 10% interest on its debt. Neither firm uses preferred stock in its capital structure.Calculate...
Firms HL and LL are identical except for their financial leverage ratios and the interest rates they pay on debt.
Firms HL and LL are identical except for their financial leverage ratios and the interest rates they pay on debt. Each has $18 million in invested capital, has $5.4 million of EBIT, and is in the 40% federal-plus-state tax bracket. Firm HL, however, has a debt-to-capital ratio of 60% and pays 11% interest on its debt, whereas LL has a 30% debt-to-capital ratio and pays only 8% interest on its debt. Neither firm uses preferred stock in its capital structure.Calculate...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT