Question
All Companies want a long term loan from the bank: DEBT RATIO for Company A is .70 TIMES INTEREST EARNED RATIO for Company A is
All Companies want a long term loan from the bank:
DEBT RATIO for Company A is .70
TIMES INTEREST EARNED RATIO for Company A is .95 for the year.
Current Ratio= 1 for the year
DEBT RATIO for Company B is .75
TIMES INTEREST EARNED RATIO for Company B is 7 for the year.
Current Ratio= 1 for the year
DEBT RATIO for Company C is .65
TIMES INTEREST EARNED RATIO for Company C is 1 for the year.
Current Ratio= 1 for the year
Which company would you lend to? (Only enough money to support one company)
A) Company A
B) Company B
C) Company C
D) You are indifferent amongst Company A and Company B and Company C.
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
Profit First For Lawn Care And Landscape Businesses
Authors: Christeen Era, Steven A Rigolosi, Mike Michalowicz
1st Edition
0578908158, 978-0578908151
