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I will rate you, thanks Montrose as shown in Table 1 below. Table 2 Selected Ratios and Credit Yield Premium Data for Montrose begin{tabular}{lc} hline
I will rate you, thanks
Montrose as shown in Table 1 below. Table 2 Selected Ratios and Credit Yield Premium Data for Montrose \begin{tabular}{lc} \hline EBITDA/interest expense & 4.80 \\ Long-term debt/equity & 0.30 \\ Current assets/current liabilities & 1.06 \\ Credit yleld premlum over U.S. Treasurles & 60 basis polnts \end{tabular} Smith has decided to consider some off-balance-sheet items in his credit analysis, as shown in Table 3. Table 3 Montrose Off-Balance-Sheet Items - Montrose has guaranteed the long-term debt (principal only) of an unconsolidated affiliate. This obligation has a present value of $980,000. - Montrose has sold $510,000 of accounts receivable with recourse at a yield of 8 percent. of 10 percent. The annual payment will be $1,000,000. invested at interest rate of 8 percent. answers to four decimal places. 1. EBITDA/Interest expense: 2. Long-term debt/equity: 3. Current assets/current llabilities: credit risk of the bond, based on the internal bond-rating criterla found in the firm's internal bond-rating criteria. Round your answers to the nearest whole number. Credit Yield Premium over U.S. Treasuries sufficient to compensate Smith for the credit risk of the bondStep by Step Solution
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