Suppose your chosen company-Coles Group require AUD 10 million to finance a new project, and your financial managers are evaluating whether to borrow or issue new share. 

a. Identify two keys financial ratios that will be important to creditors. 

b. Identify two keys financial ratios that will be important to shareholders. 

c. Calculate the 4 financial ratios above based on the financial statement you have attached. 

d. Based on purely on Financial Ratios, recommend whether it is better for the company to borrow the AUD 10 Million or issue 10 Million new shares Coles Group

Answer rating: 100% (QA)

a Two key financial ratios that will be important to creditors are the DebttoEquity Ratio and the In... View the full answer