Omnicorp has a debt to equity ratio of 2 a fixed asset, Ask an Expert

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Omnicorp has a Debt to Equity ratio of 2, a Fixed Asset Turnover ratio of 3.78, and a cash coverage ratio of 1.63. The company plans to purchase $5,000,000 in new assets this year. Please show formulas.

a. What is Omnicorp's Debt to Asset ratio?

b. How much new debt must Omnicorp use to finance the growth in assets (assuming all financial ratios will remain constant)?

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M9903126

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