Essay
a.Using the financial statements for IUP Enterprises for 2010 (given below),calculate the return on equity,the debt ratio,and the times interest earned ratio.
b.Suppose the industry average debt ratio is 50%.Give one reason why the debt ratio for IUP Enterprises may be considered favorable,and give one reason why the debt ratio for IUP Enterprises may be considered unfavorable.
IUP Enterprises
2010 Financial Statements
Correct Answer:
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a.ROE = $1,020/$3,600 = 28.33%
Debt Rati...View Answer
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Correct Answer:
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Debt Rati...
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