You have been approached by, Company Electronic Mfg Corp. anelectronics manufacturer to provide them an increase of
Fantastic news! We've Found the answer you've been seeking!
Question:
You have been approached by, Company Electronic Mfg Corp. anelectronics manufacturer to provide them an increase of $7M totheir working capital loan. (total loan = $12M) You’ve been giventhe following ratios about their business. Debt/Equity = 2,Debt/TNW = 9, Current Ratio: 1.0, Quick Ratio: 0.6, EBITDA/InterestExpense = 3. Current Working Capital Loan = $5M Will you providethem the loan? Please explain the reasoning for yourdecision.
Related Book For
Introduction To Federal Income Taxation In Canada
ISBN: 9781554965021
33rd Edition
Authors: Robert E. Beam, Stanley N. Laiken, James J. Barnett
Posted Date: