Can someone please help me out- the terms come up all over the place in corp. finance as LTD+Equity, but I remember a question I got wrong in the 2006 FI vignette where they used LTD+Equity+Current Debt. Can someone pls list off the diff’t definitions for “Capital” and what to include for different rations?? It would be much appreciated!!
A-CL
When calculating TOTAL Debt to Capitalization Ratio --> Total Capital includes CL + LT Debt + Minority Interest + SHE and Preferred Equity When calculating LT Debt to Capitalization Ration --> same as above minus CL
Invested Capital = NWC + Net fixed assets = BV of LT Debt + BV of Equity
nattyg Wrote: ------------------------------------------------------- > When calculating TOTAL Debt to Capitalization > Ratio --> Total Capital includes CL + LT Debt + > Minority Interest + SHE and Preferred Equity > > When calculating LT Debt to Capitalization Ration > --> same as above minus CL I think thats where I got screwed up- thanks! … so when calc’g TOTAL Debt to Capitalization Ratio can one use- L/A
Yep, the same happened to me.