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Question 1 You are given the following information: Bahulu Hangit Berhad selected financial data... 31st December 2017 (in RM

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Answer #1

Total Debt ratio = (Total Assets – Total Equities)/Total Assets

= (7157-3248)/7157

= 54.62%

Times interest earned = Operating income/Interest expense

= 723/502

=1.44 times

Lower the debt ratio, better it is

Higher the times interest earned ratio, better it is

Hence, the company’s performance is worse than industry

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