Exhibit 1: Industrial Comparative Ratio Analysis, Year 20XX Return on Capital (%) EBITDA Margin (%) Company A 25.1 Company B 29.6 Company C 21.8 A.A B. B C.C D. A and B 25.0 36.3 16.6 EBIT/Intere st Expense (x) 15.9 58.2 8.9 EBITDA/Int Debt/EBITD Debt/Capital erest A (%) Expense (x) (X) 1.6 19.6 62.4 12.4 0.5 2.5 35.2 15.9 46.3 Based on only the coverage ratios in Exhibit 1, the company with the highest credit quality is:
Exhibit 1: Industrial Comparative Ratio Analysis, Year 20XX Return on Capital (%) EBITDA Margin (%) Company A 25.1 Company B 29.6 Company C 21.8 A.A B. B C.C D. A and B 25.0 36.3 16.6 EBIT/Intere st Expense (x) 15.9 58.2 8.9 EBITDA/Int Debt/EBITD Debt/Capital erest A (%) Expense (x) (X) 1.6 19.6 62.4 12.4 0.5 2.5 35.2 15.9 46.3 Based on only the coverage ratios in Exhibit 1, the company with the highest credit quality is:
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question
Transcribed Image Text:Maturity (years)
1
2
3
1-year Forward rate (%)
0-years from now 1.25
1-year from now 1.75
2-years from now 1.908
Using the same information, what is the value of the put option?
A. $0.2063
B.
$0.16
C. $7.817
O D. $6.817
Spot rate (%)
1.25
1.5019
1.70491
Cash flow
$3
$3
$103
Transcribed Image Text:A.
A
Exhibit 1: Industrial Comparative Ratio Analysis, Year 20XX
EBITDA
Return on
Margin (%) Capital (%)
О В. В
OC.C
Company A
25.1
Company B
29.6
Company C 21.8
25.0
36.3
16.6
OD. A and B
EBIT/Intere
st Expense
(x)
15.9
58.2
8.9
EBITDA/Int
erest
Expense (x) (X)
1.6
0.5
2.5
Debt/EBITD Debt/Capital
(%)
19.6
62.4
12.4
35.2
15.9
46.3
Based on only the coverage ratios in Exhibit 1, the company with the highest credit quality is:
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