User Account

All Pages

Calculating debt ratio

Assignment Help Basic Computer Science
Reference no: EM131781495

(Calculating debt ratio) Fast Solutions, Inc. has the following financial structure:

Accounts payable

$ 500,000

Short-term debt

250,000

Current liabilities

$ 750,000

Long-term debt

750,000

Shareholders' equity

500,000

Total

$2,000,000

  • Compute Fast's debt ratio and interest-bearing debt ratio.
  • If the market value of Fast's equity is $2,000,000 and the value of the firm's debt is equal to its book value, assuming excess cash is zero, what is the debt-to-enterprise-value ratio for Fast?
  • If you were a bank loan officer who was analyzing whether or not to loan more money to Fast, which of the ratios calculated in parts a and b is most relevant to your analysis? Why?

Reference no: EM131781495

Questions Cloud

Discuss how schedule would differ if security convertible : Discuss how the schedule would differ if the security was convertible cumulative 7% preferred stock $1,000 par $5,000,000
How much gain or loss should foster recognize : Foster reacquired the bonds for retirement when they were selling at 102 on the open market. How much gain or loss should Foster recognize on the retirement
How proposed trump tax cuts will affect : Discuss the ways in which How Proposed Trump Tax Cuts Will Affect a Trump presidency might have an effect on a firm whose headquarters are in New York.
What amount of depreciation needs to be recaptured : Wade purchased a factory building on February 29, 1976,for $375,000. What amount of depreciation needs to be recaptured by Wade estate and what amount by John
Calculating debt ratio : (Calculating debt ratio) Fast Solutions, Inc. has the following financial structure:
Discuss about intense quake in chile : The largest earthquake in 2010 occurred offshore Bio-Bio, Chile, and measured 8.8 on the Richter scale. However, that year's most devastating quake.
Unethical or fraudulent behavior : Inventory accounting can often be used for unethical or fraudulent behavior. Discuss the accounting principles and practices as they relate to inventory
Increasingly assertive institutional stockholders : In the face of disappointing earnings results and increasingly assertive institutional stockholders, Eastman Kodak was considering the sale of its health.
Determine the amount of interest to be capitalized : Capitalization of Interest) On December 31, 2009, Hurston Inc. borrowed $3,000,000, Determine the amount of interest to be capitalized in 2010

Reviews

Write a Review

Basic Computer Science Questions & Answers

  Roles and responsibilities for implementing an sap

Please help (information technology question) the roles and responsibilities for implementing an SAP at your fictitious company. Include the following:

  Do you have any network extension devices

Tell me about your home network. How are you connected to your ISP? How many computers do you have connected to your router? Do you have your devices connected wirelessly? Do you have any devices connected with wire? Do you have any network e..

  Multiplication of two 4-bit numbers

Multiplication of two 4-bit numbers (as shown in Figure 1) can be implemented as a Wallace tree multiplier (as shown in Figure 2) by using carry saver adders.

  Effects falling oil and gas prices on the gasoline

(a) Discuss the effects falling oil and gas prices on the gasoline equilibrium quantity and price; and, (b) what price do you expectregular gasoline will be in Pullman WA on October 15, 2015 and on December 15, 2015 and explain why.

  Solving a business challenge using wlan technology

Highbrow Ed is a rapidly growing educational institution with over 3,000 students spread across five regional campuses. Most students live in off-campus housing. Highbrow's Chief Information Officer (CIO) wants to incorporate electronic collaborat..

  State three disadvantages of computing inverse of a matrix

State three disadvantages of computing the inverse of a matrix to solve a linear system rather than using the LU decomposition approach.

  Purposes and uses of technology

What is the technology you identified and what are the purposes and uses of this technology? What are the problems of existing technologies and how will the new technologies solve the problems? How will the new technologies change, support, or extend..

  How the development and use of new medical technology

Explain how the development and use of new medical technology, such as new diagnostic procedures and treatments, has increased spending and accounts for one-half to two-thirds of the increase in healthcare spending in excess of general inflation.

  How can virtualization help verbania?

How can virtualization help Verbania?

  Filter the routes in network

In your network you have a choice to use route map, prefix-list, and distribution list to filter the routes in your network.

  Er dagiram developed in visio

Perform conceptual design for the following case. You must turn in an ER diagram developed in VISIO. You may include, in your ER Diagram, specifications that include additional constraints not shown on the diagram. The specifications should be wri..

  Segmentation of the workforce

How does segmentation of the workforce apply to sex and ethnicity? Do the contemporary economic restructuring processes favor one sex or ethnicity? Why or why not?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd