Question
1.Compare three fictitious companies (Adamson, Macbride, and Raffler) by calculating the following ratios: current ratio, debt ratio, leverage ratio, and times-interest-earned ratio. Use year-end figures
1.Compare three fictitious companies (Adamson, Macbride, and Raffler) by calculating the following ratios: current ratio, debt ratio, leverage ratio, and times-interest-earned ratio. Use year-end figures in place of averages where needed for calculating the ratios in this exercise. Based on your computed ratio values, which company looks the least risky?
(Amounts in millions or billions) | Adamson | Macbride | Raffler |
Income data |
|
|
|
Total revenues | $ 9,734 | 7,317 | 136,338 |
Operating income | 297 | 227 | 5,688 |
Interest expense | 45 | 33 | 719 |
Net income | 20 | 15 | 444 |
Asset and liability data |
|
|
|
(Amounts in millions or billions) |
|
|
|
Total current assets | 437 | 5,646 | 155,736 |
Long-term assets | 113 | 1,133 | 69,915 |
Total current liabilities | 197 | 2,197 | 72,100 |
Long-term liabilities | 77 | 2,277 | 110,677 |
Common stockholders' equity | 276 | 2,305 | 42,874 |
Can you show me how i would calculate these questions?
2. C Corp. purchased ten $1000 8% bonds of Power Source Corporation when the market rate of interest was 12%. Interest is paid semiannually, and the bonds will mature in five years.
Using the PV function in Excel Superscript, compute the price Canter paid (the present value) for the bond investment
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started