The Financing Decision.ppt

Chapter 6;FIGURE 6-1 Leverage Increases Risk and Expected Return;TABLE 6-1 Selected Information about Harbridge Electronix’s Financing Options in 2000 ($ millions);TABLE 6-2 Harbridge Electronix Financial Obligations in 2000 ($ millions);Harbridge Electronix Analysis of Coverage;TABLE 6-3 Debt Ratios, 1992 - 1997 (numbers in parentheses are the number of companies in the Industry sample);TABLE 6-3 (Concluded) Debt Ratios, 1992 - 1997 (numbers in parentheses are the number of companies in the industry sample);TABLE 6-4 Median Value of Key Ratios by Standard Poor’s Rating Category (industrial long-term debt, three-year figures, 1996 - 1998;TABLE 6-5 Harbridge Electronic Partial Pro Forma Income Statements in 2000 under Bust and Boom Conditions ($ millions except EPS);FIGURE 6-2 Range of Earnings Chart for Harbridge Electronix;TABLE 6A-1 In the Absence of Taxes, Debt Financing Affects Neither Income nor Firm Value, in the Presence of Taxes, Prudent Debt Financing Increases Income and Firm Value;TABLE 6A-1 (Concluded) In the Absence of Taxes, Debt Financing Affects Neither Income nor Firm Value, in the Presence of Taxes, Prudent Debt Financing Increases Income and Firm Value