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Consider the following data for Intel Corporation for the year 2023: Item Amount ($) Total Debt 2,000,000 Total Assets 5,000,000 Total Equity 3,000,000 Net Income
Consider the following data for Intel Corporation for the year 2023:
Item | Amount ($) |
Total Debt | 2,000,000 |
Total Assets | 5,000,000 |
Total Equity | 3,000,000 |
Net Income | 400,000 |
Requirements:
- Calculate the Debt to Equity Ratio.
- Determine the Debt to Total Assets Ratio.
- Compute the Interest Coverage Ratio if interest expense is $50,000.
- Analyze the company's financial leverage.
- Evaluate the impact of a 10% increase in total debt on the leverage ratios.
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