How would you treat the following items in computing ratio

Reference no: EM13129118

financial analysts typically measure financial leverage as the ratio of debt to equity. However, there is less agreement on how to measure debt, or even equity. How would you treat the following items in computing this ratio?

* Revolving credit agreement with bank
* Cash and marketable securities
* Operating leases
* Unrecorded pension commitments
* Deferred tax liabilities
* Preferred stock
* Convertible debt

Reference no: EM13129118

Questions Cloud

Explain coronary artery disease good and bad cholesterol : Explain Coronary Artery Disease: Good and Bad Cholesterol, A middle-aged man has been diagnosed as being at high-risk of developing Coronary Artery Disease.

Favorable overhead efficiency variance : Assume variable manufacturing overhead is allocated using machine-hours. Give three possible reasons for a favorable overhead efficiency variance. Which reason is most persuasive? Why?

What is the value of k for systematic sampling : These employees has been taken by systematic sampling, what is the value of k? The researcher would start the sample selection between what two values?

What are effects of this transaction on accounting equation : On September 30, MFP Co. paid employee salaries $7,000, including $1,000 it owed to its employees last month. What are effects of this transaction on the accounting equation?

How would you treat the following items in computing ratio : financial analysts typically measure financial leverage as the ratio of debt to equity. However, there is less agreement on how to measure debt, or even equity. How would you treat the following items in computing this ratio?

Is francine necessarily right : Long-term bonds are a great investment because their interest rate is over 20%. Is Francine necessarily right?

Integral part of the annual period : Some accountants hold the view that each interim period should stand alone as a basic accounting period, whereas others view each interim period as essentially an integral part of the annual period. Distinguish between these views.

Enough evidence to establish that average weight lawnmowers : The sample standard deviation is 10 lbs. We would like to decide if there is enough evidence to establish that the average weight for the population of lawnmowers is greater than 100 lbs.

Explain preparing solutions for biochemical experiments : Preparing solutions for biochemical experiments, In preparation for a protein purification experiment, you have been asked to prepare 100 mL of an aqueous solution of Tween20

User Account

All Pages