A company has a total debt of $10 million, which is composed of a long-term loan of $6 million and a short-term loan of $4 million. The company has a net income of $2 million and an interest expense of $500,000. Calculate the company's debt-to-equity ratio and interest coverage ratio.

Answer rating: 100% (QA)

The detailed answer for the above question is provided below DebttoEquity Ratio The debttoequity ratio measures the relationship between a companys to... View the full answer