Ask Experts Questions for FREE Help!
 

Free Answers in 3 Easy Steps

Register Now
3 Steps
 


Ask QuestionsprogressAnswer QuestionsprogressBuild ReputationprogressBecome an Expert
 
At Ask Me Help Desk you can ask questions in any topic and have them answered for free by our experts. To ask questions or participate in answering them you must register for a free account. By registering you will be able to:
  • Get free answers from experts in any of our 300+ topics.
  • Accept money for answers that you provide.
  • Communicate privately with other members (PM).
  • See fewer ads.
  Answer this Question    Ask about Finance & Accounting    Ask about another Subject  
 

kakeeya
Jul 19, 2009, 02:19 PM
I have the income statement, balance sheet & Cash Flow sheet of a major corporation.

I need to figure the following:

Book Debt–Equity Ratio
Market Debt–Equity Ratio
Interest Coverage Ratio (EBIT 4 Interest Expense)

1st I need the right formula's. looking online, there seems to be a different formula on every page, and even when I find the right formula, I don't know what numbers to take from the financials to plug into the formula's

Please help.

morgaine300
Jul 20, 2009, 10:23 PM
One difficulty with ratios is that they can be done differently, so it depends on the source. If you were given these equations in your text or from the instructor, that is what you need to be using. If not, then there's tons of them here:
Investopedia.com: Financial Ratio Tutorial (http://www.investopedia.com/university/ratios/)
This site even shows some of the alternatives. (I don't, however, know how you can get a market debt-equity ratio.)

You might want to include the equations with your work so the instructor can see what equation you are using. (Since you could get a different answer if you use a different equation.)

State specifically what you can't find on those statements.