From http://finance_yahoo.com/ the following current financial information for Apple Inc (AAPL), in terms of each company's current balance sheet( Oct 31, 2021) has been obtained. Total Assets= $ 351 billion Total Liabilities = $287.91 billion Total Shareholders' Equity = $63.09 billion Total interest-bearing debt = $136.52 billion EBIT=S111,852,000,000 Interest Expenses = $2,645,000,000 a. Describe the capital structure of each companies using debt ratio and interest bearing debt ratio. [3 marks] b. What is the debt- to-enterprise value ratios? The current market price is $172 and the number of shares outstanding is 16,426,786,000. [3 marks] c. If you were a bank officer who was analysing whether or not to loan more money to these companies, which of the ratios calculated in part a and b is more relevant to your analysis? Why? [2 marks] d. Calculate and interpret the times interest earned (TIE) ratio. [3 marks]
1) From http://finance_yahoo.com/ the following current financial information for
Apple Inc (AAPL), in terms of each company's current balance sheet( Oct 31,
2021) has been obtained.
Total Assets= $ 351 billion
Total Liabilities = $287.91 billion
Total Shareholders' Equity = $63.09 billion
Total interest-bearing debt = $136.52 billion
EBIT=S111,852,000,000
Interest Expenses = $2,645,000,000
a. Describe the capital structure of each companies using debt ratio and interest
bearing debt ratio. [3 marks]
b. What is the debt- to-enterprise value ratios?
The current market price is $172 and the number of shares outstanding is
16,426,786,000. [3 marks]
c. If you were a bank officer who was analysing whether or not to loan more
money to these companies, which of the ratios calculated in part a and b is more
relevant to your analysis? Why?
[2 marks]
d. Calculate and interpret the times interest earned (TIE) ratio. [3 marks]
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