Reference no: EM133378525
Question 1. West Jet Limited has share capital of $11,750,000 and retained earnings are 3,270,000. Their short term bank loan are $1,250,000 and long term loans are $7,500,000. What will be the Debt Equity Ratio of this company?
Question 2. Debt Equity Ratio represents which category of ratios?
Leverages
Market Prospects
Profitability
Liquidity
Question 3. Your company's IT Manager has a salary of CAD. 10,000 per month. Assuming he is subject to only Federal Income Tax in Canada, and regular CPP and EI, how much salary will you wire to his bank account for the month of January 2023. (Explore CPP, EI and Federal Income Tax rates)?
Question 4.
Marks Fashions Inc. Ontario has share capital of $150,000 and retained earnings of $325,000. They have secured a long term bank loan of $236,000 at the interest rate of 16% from the CIBC Financials Limited. The Apparel industry in Canada has an acceptable debt equity of 0.67 and Marks has a net profit ratio of 31%. What will be your advice to Marks management?
Repay $18,250 to the banks shortly
Borrow more $82,250 from the banks
Borrow more $239,000 from the banks
Repay $135,500 to the banks immediately
Question 5. Share Capital of Microsoft Inc. is $8,250,0000. Their Retained Earnings are 1,575,0000 and bank loan of $6,790,000. What will be the Debt Equity Ratio of this company?
Question 6. Explore on 'sec.gov' and find out the debt equity ratio of Amazon.Com Inc. by investigating their consolidated financial statements for the year ending September 30, 2022?