Question

Two online travel companies, E-Travel and Pricecheck, provide the following selected financial data:


Required:
1. Calculate the debt to equity ratio for E-Travel and Pricecheck. Which company has the higher ratio? Compare your calculations with those for Coca-Cola and PepsiCo reported in the chapter. Which industry maintains a higher debt to equity ratio?
2. Calculate the times interest earned ratio for E-Travel and Pricecheck. Which company is better able to meet interest payments as they become due? Compare your calculations with those for Coca-Cola and PepsiCo reported in the chapter. Which industry has a better times interest earnedratio?


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  • CreatedJuly 15, 2014
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