ESSAY. Write your answer in the space provided or on a separate sheet of paper.
In 2010, a biotechnology firm, DNA Map Inc., had $700 million of assets and $280 million of liabilities. Earnings before interest and taxes were $215 million, interest expense was $10 million, and the tax rate was 32%.
(a) Calculate the times-interest-earned.
(b) Calculate the debt-to-equity ratio.
(c) Calculate the net margin.
The following data are available for two companies, Apple and Oracle, all stated in thousands of dollars.