Question: f. A Boldman Socks analyst stated: ACME's rating might be in danger. Moody's has stated that will downgrade the firm's debt to junk if the

f. A Boldman Socks analyst stated: "ACME's rating might be in danger. Moody's has stated that will downgrade the firm's debt to junk if the company's coverage (EBIT/interest) ratio drops below 2 next year." Does the new ACME resulting from the acquisition satisfy Moody's requirement? g. An anxious client calls you up: "Is the deal earnings accretive or dilutive?" Please answer his question. h. Here are edited extracts from a Morrill Lunch research report: "The widget industry's historical reinvestment rates (including net Capex and working capital requirements) are around 20% of after-tax EBIT... Using pre-announcement stock prices, straightforward
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