Question
The five-year projection for Hydro Supplies appears below Calculate the companys times-interest-earned ratio for each year from 2021 to 2026. Calculate the percentage EBIT can
The five-year projection for Hydro Supplies appears below Calculate the companys times-interest-earned ratio for each year from 2021 to 2026. Calculate the percentage EBIT can fall before interest coverage dips below 1.0 for each year from 2021 to 2026. Consulting a bond table (in text or online) what bond rating would Hydro Supplies have in 2021 if the rating was based solely on the firms interest coverage ratio? Based on this rating, would a significant increase in financial leverage be a prudent strategy for Hydro Supplies?
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Derivatives And Internal Models
Authors: Hans Peter Deutsch, Mark W. Beinker
5th Edition
3030229017, 9783030229016
