a.) What is the debt ratio? b.) What is the Times Interest earned ratio? c.)...
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Accounting
a.) What is the debt ratio?
b.) What is the Times Interest earned ratio?
c.) What is the fixed-payment coverage ratio?
(Round to two decimal points)
Debt analysis Springfield Bank is evaluating Creek Enterprises, which has requested a $4,110,000 loan, to assess the firm's financial leverage and financial risk. On the basis of the debt ratios for Creek, along with the industry averages and Creek's recent financial statements, evaluate and recommend appropriate action on the loan request. Industry averages Creek Enterprises Income Statement 0.44 Debt ratio 7.39 Times interest earned ratio Creek Enterprises Balance Sheet 1.81 Fixed-payment coverage ratio
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