The key financial ratios Standard & Poor’s analysts use to assess credit risk and assign credit ratings to industrial companies. The same financial ratios for three firms follow.

Firm 1 Firm 2 Firm 3
EBIT interest coverage 2.7 12.8 16.7
EBITDA interest coverage 3.7 18.7 24.6
FFO/Total debt (%) 19.8 80.2 135.1
Free operating cash flow/Total debt (%) 8.2 40.6 87.9
Total debt/EBITDA 4.0 1.0 0.3
Return on capital (%) 9.9 29.2 32.7
Total debt/Capital (%) 54.8 30.2 8.1

Required:

a. What credit rating would be assigned to Firm 1?
b. What credit rating would be assigned to Firm 2?
c. Does Firm 3 have more or less credit risk than Firm 2?

Harry is 25 years old with a 1.55 rating factor for his auto insurance. if his annual base premium is $1,012, what is his total premium? $1,568.60 $2,530 $1,582.55 $1,842.25

One of your new suppliers, kim, has been hearing rumors about your firm’s lack of capability to deliver high quality products and writes an email asking you to address the claims being made. in replying to her, you want to be sure that you are very clear and leave no room for misinterpretation. which of the following aspects of effective communication should you give the most attention? (a) making sure you understand kim’s areas of expertise. (b) supporting your reply with relevant data and facts. (c) establishing your credibility as an expert. (d) paying attention to implied communications.

Juanita and sam attend a beach party and notice that the local beach appears to have a great deal more trash washed up on shore than it did when they were young. the water doesn't appear nearly as clear, and there seems to be less evidence of small water creatures living in the shallows. an afternoon at the local library convinces them that one major cause is the new factory nearby. after some discussion, they decide their next step should be identifying the cause of the changes identifying the problem picketing the guilty factory lobbying their elected representatives to complain about the problem talking to a local environmental group about solutions