Times interest earned ratio and return on asset ration

Assignment Help Financial Management

Reference no: EM131493193

A hospital organizaiton is applying for a new loand to buy magnetice resonce imaging equipment. The bank asks for financial statements before it will consider the loan. The income statement shows $500000 of income before interest expense and income taxes. The overall interest expense for the year was $50000. Which additional information will the bank need to determine the loan can be approved? Please explain in detail. 1) income earned ratio, 2) times interest earned ratio, 3) return on asset ration 4) income tax ratio. Please explain in detail.

Reference no: EM131493193

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