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(Financing decisions) Emma's Electronics Incorporated has total assets of $58 million and total debt of $40 million. The company also has operating profits of $24
(Financing decisions) Emma's Electronics Incorporated has total assets of $58 million and total debt of $40 million. The company also has operating profits of $24 million with interest expenses of $6 million. a. What is Emma's debt ratio? b. What is Emma's times interest earned? c. Based on the information above, would you recommend to Emma's management that the firm is in a strong enough position to assume more debt and increase interest expense to $9 million
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