need help 7 of 8 (2 complete) Hw Score: 11.11%. 4 of 36 pts Score: 0 of 3 pts E

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7 of 8 (2 complete) Hw Score: 11.11%. 4 of 36 pts Score: 0 of 3 pts E Question Help Problem 4-15 (similar to) Nick and Alexis Resum decisions) Emma's Electronics Incorporated has total assets of $63 million and total debt of $14 million. The company also has operating profits of $56 Agre million with interest expenses of $7 million. a. What is Emma's debt ratio? b. What is Emma's times interest earned? c. Based on the information above, would you recommend to Emma's management that the firm is in a strong en interest expense to $8 million? tutorp spri Outli a. Emma's debt ratio is96. (Round to two decimal places) BootCamp5 201 0. 2018 Le Course Hero Enter your answer in the answer box and then click Check Answer. 29

Explanation / Answer

Debt Ratio is defined by Total Liabilities/Total Assets

Here Total debt=$14 million

Total Assets=$63 million

Thus Debt ratio is:14/63

Debt Ratio =0.222

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