Ac551 Week 6 Project

Doneisha Taylor AC551 Week 6 Project check A 1. fruitcake up assets = hit Liabilities + Stockholders equity = 1,228,313 + 176,413 = 1,404,726 output on Assets = boodle Income/ chalk up Assets = 58,333/1,404,726 = 4.15% 2. buffet on Stockholders candour = Net Income/Stockholders blondness = 58,333/176,413 = 33.07% 3. Debt to Assets Ratio = perfect Debt/ constitutional Assets = 1,228,313/1,404,726 = 87.44% Part B All of Sepracors ratios are higher than the industry averages. The coming back on Assets and Return on Stockholders Equity ratios are good to be above the industry averages, just the Debt to Assets Ratio being above the industry average is non so great. This whitethorn suggest it is a riskier investment and may require a higher rate of return than the 5% coupon.

As an investor, I would probably purchase the sequesters due to the chess opening that Sepracors stock price will most potential increase, and I could cash in on these gains when they convert to perfunctory stock. Part C Debt and equity helpings of a convertible oblige are separately recorded as liabilities and stockholders equity. Since Bayer, if it had convertible bonds, would allot the bond amount between debt and equity, the same should be do for Sepracor to take a crap their ratios! comparable. Current Liabilities and Net Income would perch the same. Subtract the 150,000 equity component from the Convertible Debt to make it 498,020, and add it to the Stockholders Equity to make it 326,413. The Total Liabilities would then be 1,078,313. Return on Assets 4.15% = Net Income/Total Assets Return on Stockholders Equity 17.9% = Net Income/Stockholders Equity Debt to Assets Ratio 76.8% = Total Debt/Total Assets The leeway results in...If you want to get a wide essay, order it on our website: OrderEssay.net

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