Reference no: EM132760935

Mr. Joseph has identified five different companies in which he is interested in investing, however, he has concerns over the economy and wants to invest in companies with the lowest debt exposure.

The following is a list of data for the investments:

Company           Total Assets            Total Liabilities         Net Income
A                   $10,000,000                $1,000,000           $200,000
B                   20,000,000                  3, 000,000             1,000,000
C                  60,000,000             4,000,000                   250,000
D                  15,000,000                  6,000,000             1,600,000
E                   30,000,000              22,000,000                 4,000,000

Based on the data provided:

Problem 1: Calculate the debt-to-asset ratio and rank the investments base on least risky to most risky

Problem 2: Explain the logic of your analysis

Problem 3: Briefly explain the "times earned interest ratio" and how it would be used in your analysis