Brussels Electronics, Inc. has total assets of ($64) million and total debt of ($45) million. The company
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Brussels Electronics, Inc. has total assets of \($64\) million and total debt of \($45\) million. The company also has operating profits of \($23\) million with interest expenses of \($7\) million.
a. What is Brussels Electronics’s debt ratio?
b. What is Brussels Electronics’s time interest earned?
c. Based on the information above, would you recommend to Brussels Electronics’s management that the firm is in a strong enough position to assume more debt and increase interest expense to \($9\) million?
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Related Book For
Foundations Of Finance
ISBN: 9781292318738
10th Global Edition
Authors: Arthur Keown, John Martin, J. Petty
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