Emma's Electronics Incorporated has total assets of $63 million and total debt of $39 million. The company also has operating profits of $23 million with interest expenses of $6 million
a. What is Ellie's debt ratio?
b. What is Ellie's times interest earned?
c. Based on the information above, would you recommend to Ellie's management that the firm is in a strong enough position to assume more debt and increase interest expense to $7 million.
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Emma's Electronics Incorporated has total assets of $63 million and total debt of $39 million. The company also has operating profits of ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
The last recession changed the way many companies offer support to people and communties in need. many companies
Answers (1)
In order to craft effective business messages, beginning writers should follow the writing process closely. The first step in this process is analyzing the purpose of the message and audience.
Answers (1)
Josh is putting money into a savings account. he starts with $550 in the savings account, and each week he adds $30.
Answers (1)
Is the yield to maturity on a bond the same thing as the required return? Is YTM the same thing as the coupon rate? Suppose today a 10 percent coupon bond sells at par. Two years from now, the required return on the same bond is 8 percent.
Answers (1)
When the economy is in a recession, the government can use expansionary fiscal policy to stimulate and encourage economic growth.
Answers (1)
New Questions in Business
Dispatch Hauling Corporation has an online forum where employees can post comments. Eddie posts a racially offensive video on the forum. Dispatch should
Answers (1)
As the operations manager for American Airlines you have decided to invest in 10 new jets for the company's fleet. There are three outcomes for this investment.
Answers (1)
A neighborhood recreation program serves a total of 280 children who are either 11 years old or 12 years old. the sum of the children's ages is 3,238 years. how many 11-year-old children does the recreation program serve?
Answers (2)
Behavioral science relies on data from past sales to forecast human behavior to develop strategic plans and goals
Answers (1)
Destin Industries received a $60,000 check from one of its customers, deposited it into its bank account, and recorded it in its bank register. The funds were reflected in Destin's bank account two days later.
Answers (1)