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The balance sheet for John, Inc. for December 31st,2020 includes the following liabilities and owner's...

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Finance

The balance sheet for John, Inc. for December 31st,2020 includes the following liabilities and owner's equity: Time leLiabilitiesCurrent liabilitiesAccounts payable$9.185.000Short-term/current debt2,047,000Other current liabilities1,474,000Total current liabilities$12,706,000Long-term debt11,383,000Other long-term liabilities2,521,000Long-term liabilities$13.904,000Stockholder equity$17,714,000Total$44,324,000a. What are Robert's debt ratio and interest-bearing debt ratio? [8 marks]b. If the market value of Robert's common equity is $44.90 million and assuming that Home Depot has no excess cash. w firm's debt-to-enterprise-value ratio? [5.5 marks]Note: The market value of the firm's interest-bearing debt equals its book value.c. If you were a bank loan officer analyzing whether or not to loan more money to Allston-Brighton Corp, which of the rati calculated is most relevant to your analysis? Why? [4 marks]3. a. Discuss the risk/return tradeoff and how it relates to finance with an example.[6 Marks]b. If a firm's EPS is $12.5, and the firm is paying a dividend of $2,25 per share, what is the firm's dividend payout ratio?

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