Following is the Balance Sheet of a company as on Mar 31, 2006: Liabilities OMR Assets OMR Equity Share Capital 250,000 200,000 20,000 30,000 500,000 Cash-in-hand Cash at Bark Sundry Debtors Fixed Assets 10,000 30,000 50,000 320,000 500,000 9% Debentures Bills Payable Creditors You are required to compute Total Assets to Debt Ratio.
Following is the Balance Sheet of a company as on Mar 31, 2006: Liabilities OMR Assets OMR Equity Share Capital 250,000 200,000 20,000 30,000 500,000 Cash-in-hand Cash at Bark Sundry Debtors Fixed Assets 10,000 30,000 50,000 320,000 500,000 9% Debentures Bills Payable Creditors You are required to compute Total Assets to Debt Ratio.
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
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Debenture Valuation
A debenture is a private and long-term debt instrument issued by financial, non-financial institutions, governments, or corporations. A debenture is classified as a type of bond, where the instrument carries a fixed rate of interest, commonly known as the ‘coupon rate.’ Debentures are documented in an indenture, clearly specifying the type of debenture, the rate and method of interest computation, and maturity date.
Note Valuation
It is the process to determine the value or worth of an asset, liability, debt of the company. It can be determined by many processes or techniques. Many factors can impact the valuation of an asset, liability, or the company, like:
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EXAMPLE 9:
Following is the Balance Sheet of a company as on Mar 31, 2006:
Liabilities
OMR
Assets
OMR
Cash-in-hand
Cash at Bark
Equity Share Capital 250,000
200,000
20,000
30,000
500,000
10,000
30,000
50,000
320,000
500,000
9% Debentures
Bills Payable
Sundry Debtors
Fixed Assets
Creditors
You are required to compute Total Assets to Debt Ratio.
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