21. Interpreting financial ratios (S29.6) Here are some data for five companies in the same industry: Company
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21. Interpreting financial ratios (S29.6) Here are some data for five companies in the same industry:
Company Code A B C D E EBIT 10 30 100 −3 80 Interest expense 5 15 50 2 1 You have been asked to calculate a measure of times-interest-earned for the industry. Discuss the possible ways that you might calculate such a measure. Does changing the method of calculation make a significant difference to the end result?
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Related Book For
Principles Of Corporate Finance
ISBN: 9781264080946
14th Edition
Authors: Richard Brealey, Stewart Myers, Franklin Allen, Alex Edmans
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