Following are some key balance sheet and income statement figures for Canadian Oil Sands Limited from...
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Following are some key balance sheet and income statement figures for Canadian Oil Sands Limited from year end 2015. All figures are in $ millions. Canadian Oil Sands Ratios Table - 2015 Total Debt $ 2,341 Cash Flow from Operations $ 435 Debt-to-cash flow (times) ? Total Debt $ 2,341 Total Shareholders' Equity $ 3,885 Total Capital (Debt + Equity) P % of total debt in capital structure ? EBIT $ 71 Total Interest Expense $ 138 EBIT Interest Coverage ? a) (4 marks) Using the information, please complete the table (fill in the ?). b) (3 marks) One of the major covenants under the company's Senior Notes trust indenture is the following: Maximum long-term debt-to-total capitalization of 55% How much more debt can the company issue before breaching its key leverage covenant? c) (3 marks) Assume now the company wishes to issue $800 million of new debt securities with a coupon rate of 5%. The company has a new issue test of EBIT to Interest Coverage of at least 1x. Can the company issue the bonds? Show all your work. Following are some key balance sheet and income statement figures for Canadian Oil Sands Limited from year end 2015. All figures are in $ millions. Canadian Oil Sands Ratios Table - 2015 Total Debt $ 2,341 Cash Flow from Operations $ 435 Debt-to-cash flow (times) ? Total Debt $ 2,341 Total Shareholders' Equity $ 3,885 Total Capital (Debt + Equity) P % of total debt in capital structure ? EBIT $ 71 Total Interest Expense $ 138 EBIT Interest Coverage ? a) (4 marks) Using the information, please complete the table (fill in the ?). b) (3 marks) One of the major covenants under the company's Senior Notes trust indenture is the following: Maximum long-term debt-to-total capitalization of 55% How much more debt can the company issue before breaching its key leverage covenant? c) (3 marks) Assume now the company wishes to issue $800 million of new debt securities with a coupon rate of 5%. The company has a new issue test of EBIT to Interest Coverage of at least 1x. Can the company issue the bonds? Show all your work.
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Related Book For
Financial Statement Analysis
ISBN: 978-0078110962
11th edition
Authors: K. R. Subramanyam, John Wild
Posted Date:
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