Key Ratios and the Industry Target to be used for analyzing the Financial Position of the Home work Company 1. 2. 5x 3. Financing Ratios: Industry Target Ratio Debt ratio 30% Times interest earned Return on Equity Ratio: Return on equity 18% Creating share holder value Ratios: Price/book ratio 1.7 x Price/earnings ratio 10 x Economic Value Added assuming the cost of capital is 9%. The target ratio is 12% To be Due by 25th of May 4. 5. 6. 7. Key Ratios and the Industry Target to be used for analyzing the Financial Position of the Home work Company 1. 2. 5x 3. Financing Ratios: Industry Target Ratio Debt ratio 30% Times interest earned Return on Equity Ratio: Return on equity 18% Creating share holder value Ratios: Price/book ratio 1.7 x Price/earnings ratio 10 x Economic Value Added assuming the cost of capital is 9%. The target ratio is 12% To be Due by 25th of May 4. 5. 6. 7