Identify key financial ratios that important to creditors

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Reference no: EM132651721

Suppose your chosen company requires AUD 10 Million to finance a new project and your finance managers are evaluating whether to borrow or issue new shares.

Question a) Identify 2 key financial ratios that will be important to creditors.

Question b) Identify 2 key financial ratios that will be important to shareholders.

Question c) Calculate the 4 financial ratios (above) based on the financial statements

Question d) Based purely on Financial Ratios, recommend whether it is better for the company to borrow the AUD 10 Million or issue AUD 10 Million new shares.

Reference no: EM132651721

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