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1. Consider the following: net operating profit after taxes = $450,000, total assets = $1,000,000, interest expenses = $100,000, book value (net worth) = $600,000,
1. Consider the following: net operating profit after taxes = $450,000, total assets = $1,000,000, interest expenses = $100,000, book value (net worth) = $600,000, current liabilities = $150,000, short-term debt (notes payable) = $0, tax rate = 25%. [16 points] a. Calculate the interest coverage ratio. b. Calculate the dollar value of long-term debt on the balance sheet. c. Calculate the equity multiplier ratio. d. Management intends to partially finance a growth opportunity using long-term debt. The bond contract requires that the sum of current liabilities plus long-term debt must not exceed 50% of total assets (as reported on the most recent balance sheet). Calculate the maximum dollar amount of new long-term debt
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