Cash flow ratio might differ from a proportion of debt ratio

Assignment Help Business Management

Reference no: EM13721016

Give an example of how a cash flow ratio might differ from a proportion of debt ratio. Assuming these ratios differ for a firm (e.g., the cash flow ratios indicate high financial risk, while the proportion of debt ratio indicates low risk), which ratios would you follow? Justify your choice.

Reference no: EM13721016

Questions Cloud

What is the value of an investment that pays : What is the value of an investment that pays $54,000 every other year forever, if the first payment occurs one year from today and the discount rate is 18 percent compounded daily?

What would be the nominal and effective cost of that credit : A company buys $10 million of materials (net of discount) on terms 3/5, net 60, and it currently pays on the 5th day & takes discounts. The company plans to expand, which will mean add'l financing. 1) If the company decides to forgo discounts, could ..

Simple bond valuation problem with respective values : A careful review of Chapters 5 and 6 revealed a progressive relations ship between the time value of money (TVM) formula, the annuity formula and the Bond Value (price) formula. Based on this review one could make the argument that the present value ..

Calculate the forward premium-discount on the dollar : Calculate the forward premium/discount on the dollar (which is your home currency) as well as the premium/discount on the euro if the spot rate is €0.73/$ and the three-month forward rate is €0.81/$. (Note: Label clearly which percent is for the doll..

Cash flow ratio might differ from a proportion of debt ratio : Give an example of how a cash flow ratio might differ from a proportion of debt ratio. Assuming these ratios differ for a firm (e.g., the cash flow ratios indicate high financial risk, while the proportion of debt ratio indicates low risk), which rat..

About the retirement funds : Suppose you wish to retire forty years from today. You determined that oyu need $50,000 per year once you retire, with the first retirement funds withdrawn one year from the day you retire. You estimate that you will earn 6% per year on your retireme..

Future of social media and social media marketing : How do you view the future of social media- and social media marketing? Write a description citing three or four trends or developments you think may evolve over the next decade.

Calculating the time value of money for savings goals : Calculating the Time Value of Money for Savings Goals. If you desire to have $20,000 for a down payment for a house in 5 years, what amount would you need to deposit today? Assume that your money will earn 5 percent.

What is the companys gan or loss at sales of widgets : Company A sells widgets for $20 each. The fixed costs are $60,000, & variable costs are $7 per widget. What is the company's gan or loss at sales of 6,000 widgets? At 15,000 widgets? How would the break-even point be affected if the selling price was..

User Account

All Pages