Question
Evaluate the financial ratios based on the following data: Current Assets: $150 million Current Liabilities: $100 million Total Liabilities: $250 million Total Assets: $500 million
- Evaluate the financial ratios based on the following data:
- Current Assets: $150 million
- Current Liabilities: $100 million
- Total Liabilities: $250 million
- Total Assets: $500 million
- Equity: $250 million
a. Calculate the Current Ratio. b. Determine the Debt to Equity Ratio. c. Compute the Equity to Assets Ratio. d. If the company plans to reduce its liabilities by $50 million using cash, what will be the new Current Ratio?
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Fundamentals of Financial Management
Authors: Eugene F. Brigham, Joel F. Houston
11th edition
324422870, 324422873, 978-0324302691
