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ID: 2515058 • Letter: #
Question
: For quick access, place your bookmarks here on the bookmarks bar. Import bookmarks now Selected financial data for Bahama Bay and Caribbean Key are as follows: (S in millions) Bahama Bay Caribbean Key Total assets Total liabilties Total stockholders' equty 2018 201720182017 9503 $ 9,422 $ 8,703 $ 8,742 7,982 7446 ,423 413 1,521 1,976 1,280 1,329 Sales revenue Interest expense Tax expense Net income $ 5,807 S 12,7r9 143 340 342 180 300 Required: 1-a. Calculate the debt to equity ratio for Bahama Bay and Caribbean Key for the most recent year. (Do not round intermedia $5.500,000 should be entered as 5.5).) Debt to Equity Ratic Bahama Bay Caribbean Key 1-b. Which company has the higher ratio? O Bahama Bay O Caibbean KeyExplanation / Answer
Answer;
1
1a debt to equity ratio
total liabilities
/
total stockholder
equity
Bahamas Bay
7982
/
1521
5.248
Caribbean Key
7423
/
1280
5.799
1-b
Which company has the higher ratio?
Caribbean Key
___________________________________
2
2.a Return on asset
Net income
/
Average Total Assets
Bahamas Bay
309
/
9462.5
3.27%
Caribbean Key
342
/
8722.5
3.92%
2-b
Which Company appear more profitable
Carribbean Key
____________________________________________
3
3.a times interest earned ratio
Net income + Interest + Taxes
Interest
Bahamas Bay
555
/
66
8.409
Caribbean Key
825
/
340
2.426
3-b
Bahamas Bay
1a debt to equity ratio
total liabilities
/
total stockholder
equity
Bahamas Bay
7982
/
1521
5.248
Caribbean Key
7423
/
1280
5.799
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