FIN 320 Week 2 Individual Assignment Assignments from the Readings

Apr 24th, 2015
Studypool Tutor
Price: $5 USD

Tutor description

FIN 320 Week 2 Individual Assignment Assignments from the Readings

Word Count: 662
Showing Page: 1/3
Problem P2-12Debt analysis Springfield Bank is evaluating Creek Enterprises, which has requested a $4,000,000 loan, to assess the firm's financial leverage and financial risk. On the basis of the debt ratios for Creek, along with the industry averages and Creek's recent financial statements (on the facing page), evaluate and recommend appropriate action on the loan request.RatioDefinitionCalculationCreekIndustryDebt0.730.51TimesInterest Earned3.007.30FixedPaymentCoverage? {[(Principal ? Preferred StockDividends)] ? [1? (1 - t)]}+ {[($800,000 ??$100,000)]? [1? (1 - 0.4)]}1.191.85Because Creek Enterprises has a much higher degree of indebtedness and much lower ability to service debt than the average firm in the industry, the loan should be rejectedProblem P2-13Common-size statement analysis a common-size income statement for Creek E

Review from student

Studypool Student
" Thank you, Thank you, for top quality work, this is your guy!! "
Ask your homework questions. Receive quality answers!

Type your question here (or upload an image)

1819 tutors are online

Brown University

1271 Tutors

California Institute of Technology

2131 Tutors

Carnegie Mellon University

982 Tutors

Columbia University

1256 Tutors

Dartmouth University

2113 Tutors

Emory University

2279 Tutors

Harvard University

599 Tutors

Massachusetts Institute of Technology

2319 Tutors

New York University

1645 Tutors

Notre Dam University

1911 Tutors

Oklahoma University

2122 Tutors

Pennsylvania State University

932 Tutors

Princeton University

1211 Tutors

Stanford University

983 Tutors

University of California

1282 Tutors

Oxford University

123 Tutors

Yale University

2325 Tutors