Question
6. The following financial data are for two companies in the same industry. CASS HAKN Industry Average EBITDA/Interest exp 4.94 3.23 43.65 Total Debt to
6. The following financial data are for two companies in the same industry.
|
| CASS | HAKN | Industry Average |
| EBITDA/Interest exp | 4.94 | 3.23 | 43.65 |
| Total Debt to Capital | 55.19% | 50.2% | 28.32% |
| FFO/Debt | 0.14 | 0.23 | 3.01 |
| Current Ratio | 0.54 | 0.71 | 1.01 |
| Credit Rating |
|
| A- |
The industry is rated A- on the average. What rating would you give these two companies? Describe by using the given ratios.
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Fundamentals Of Corporate Finance
Authors: Robert Parrino, David S. Kidwell, Thomas W. Bates
5th Edition
1119795435, 978-1119795438
