The relationship between financial leverage and profitability pelican paper, inc., and timberland forest, inc., are rivals in the manufacture of craft papers. some financial statement values for each company follow use them in a ratio analysis that compares the firms' financial leverage and profitability. a. calculate the following debt and coverage ratios for the two companies. discuss their financial risk and ability to cover the costs in relation to each other. (1) debt ratio (2) times interest earned ratio b. calculate the following profitability ratios for the two companies. discuss their profitability relative to each other. (1) operating profit margin (2) net profit margin (3) return on total assets (4) return on common equity c. in what way has the larger debt of timberland forest made it more profitable than pelican paper? what are the risks that timberland's investors undertake when they choose to purchase its stock instead of pelican's?
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When an interest-bearing note comes due and is uncollectible, the journal entry includes debitingaccounts receivable and crediting notes receivable and interest revenue.accounts receivable and crediting interest revenue.notes receivable and crediting accounts receivable and interest revenue.notes receivable and crediting accounts receivable.
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Your dormitory, griffingate, has appointed you central banker of its economy, which deals in the currency of wizcoins. assume that the velocity of wizcoins in griffingate is constant at 10,000 transactions per year. right now, real gdp is 1,000 wizcoins, and there are 2,000 wizcoins in existence.
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The relationship between financial leverage and profitability pelican paper, inc., and timberland fo...
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