In addition to the two debt ratios described in this chapter, the World Bank recommends the use
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In addition to the two debt ratios described in this chapter, the World Bank recommends the use of four additional debt ratios in assessing a country’s risk: the ratio of total external debt to GNP, the ratio of total external debt to exports, the debt-service ratio (accrued debt service to exports), and the interest-service ratio (accrued interest service to exports).
In 1998, Mexico had \($380\) billion in gross national product (GNP), \($160\) billion in total external debt, \($140\) billion in exports, and \($29\) billion in accrued debt service, and \($13\) billion in accrued interest service. Calculate the above four debt ratios for Mexico.
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Global Corporate Finance Text And Cases
ISBN: 9781405119900
6th Edition
Authors: Suk H. Kim, Seung H. Kim
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