Question
Exxon Mobil Corporation reported total debt of $50 billion and shareholders' equity of $100 billion. Additionally, the company's EBIT (earnings before interest and taxes) is
Exxon Mobil Corporation reported total debt of $50 billion and shareholders' equity of $100 billion. Additionally, the company's EBIT (earnings before interest and taxes) is $20 billion, and its interest expense is $5 billion. Calculate Exxon Mobil's debt-to-equity ratio and times interest earned ratio, and interpret the results.
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International Financial Statement Analysis CFA Institute Investment Series
Authors: Thomas R. Robinson, Hennie Van Greuning CFA, Elaine Henry, Michael A. Broihahn, Sir David Tweedie
1st Edition
0470287667, 978-0470287668
