This action was probably ill advised and hopefully a

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: This action was probably ill advised and hopefully a one time occurrence. The firm’s total debt to total assets ratio was down to 42.5 percent ($370 million/$870 million) by year-end 2010. Even if the $120 million portion of debt due in 2019 had not been paid off, and $120 million was added to the numerator and denominator of the above ratio, the total debt to total assets ratio would have still been a relatively healthy 49.5% ($490 million/$990 million) at year-end 2006. With $500 million in equity, total debt would have still been less than equity and long-term debt considerably less. The firm clearly generates enough cash flow to meet its dividend obligatio...
View Full Document

{[ snackBarMessage ]}

Ask a homework question - tutors are online