Question
Problem Scenario Analyse the sources of finance for each of the two companies in 2023 as compared to 2022. Use two capital structure ratios to
Problem Scenario "Analyse the sources of finance for each of the two companies in 2023 as compared to 2022. Use two capital structure ratios to support your answer and provide an explanation regarding the changes in the composition of the sources of finance for each enterprise. Note: ensure that you analyse in this question, not just describe the ratio values.
Using this Structure ratio formula:
Debt Ratio= Total liabilities divided by total assets
Formula: Interest coverage ratio = Operating profit or EBIT divided by Interest expense
Given Data:
BBN and ECL (Please Dont Shortcut the computation. Thank you)
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Financial Management Principles and Applications
Authors: Sheridan Titman, Arthur J. Keown, John H. Martin
13th edition
134417216, 978-0134417509, 013441750X, 978-0134417219
