An investor is considering investing in the long-term bonds and ordinary shares of Companies X LO 6
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An investor is considering investing in the long-term bonds and ordinary shares of Companies X LO 6 Long-Term Solvency and and Y. Both companies operate in the same industry. In addition, both companies pay a dividend Market Strength Ratios per share of 4 and a yield of 10 per cent on their long-term bonds. Other data for the two companies follow:
Calculate the debt to equity, interest coverage, and price/earnings ( \(\mathrm{P} / \mathrm{E})\) ratios, and the dividends yield, and then comment on the results. (Round calculations to one decimal place.)
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Financial Accounting A Global Approach
ISBN: 9780395839867
1st Edition
Authors: Sidney J. Gray, Belverd E. Needles
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