Manufacturers Bank is evaluating Aluminum Industries Inc which has requested
Manufacturers Bank is evaluating Aluminum Industries, Inc., which has requested a $3 million loan. On the basis of the debt ratios for Aluminum, along with the industry averages and Aluminum’s recent financial statements (which follow), evaluate and recommend appropriate action on the loan request.
Industry Averages
Debt ratio .......... 0.51
Debt-equity ratio ....... 1.07
Times interest earned ratio .... 7.30
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