Fin320-group project - the creditors. b. Googles debt...

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YunChen Shen (Jenny Shen) http://finapps.forbes.com/finapps/jsp/finance/compinfo/Ratios.jsp?tkr=GOOG Google Financial Leverage 2009: Debt Ratio: 0/ 40,496.78 = 0% Debt –to –equity: 0/ 36,004.22 =0 Times interest earned: 8,312.19 /0=0 Fixed Charge Coverage: ( 8,312.19 +0)/0 =0 Google Financial Leverage 2010: 7. Debt Ratio: 3465/ 57851= 0.059= 5.9% a. 5.9% of the Google assets are financial by debt, whereas for the average firm 0% of their asset are financial by debt. Google’s debt ratio increase 5.9% in 2010. b. Google can survive this small debt there is growth and stability in their earnings. 8. Debt –to –equity: 3465/ 46241=0.08 a. For every dollar invested by the owner, Google borrows $ 0.08 from
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Unformatted text preview: the creditors. b. Googles debt equity ratio increased in 2010. c. Objective to decrease debt equity ratio: (1) Companies need to request the owner to contribute additional funds to the company and use funds to pay off some of the short-term debts. However, Google has no debt; the company generates a lot of cash and thus do not have to borrow. 9. Times interest earned: 10,796,000 /0=0 10. Fixed Charge Coverage: (8,381,000+0)/0 =0 Income Statement & Balance Sheet Sources: http://finance.yahoo.com/q/is?s=GOOG+Income+Statement&annual http://www.google.com/finance?fstype=bi&cid=694653...
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Fin320-group project - the creditors. b. Googles debt...

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