The coverage for the stocks listed on the New York Stock Exchange in a comparable time period was 5.1. Other things being equal, does AGF appear to have higher or lower interest coverage than others in its industry?

DISCUSSION ESSAY

Long-term solvency refers to a company’s ability to pay its long-term obligations. Financing ratios provide investors and creditors with an indication of this element of risk.

Required:

I. Calculate the debt to equity ratio for AGF for 2024.

2. The average ratio for the stocks listed on the New York Stock Exchange in a comparable time period was 1.0. Other things being equal, does AGF appear to have higher or lower default risk than others in its industry?

3. Is AGF experiencing favorable or unfavorable financial leverage?

4. Calculate AGF’s times interest earned ratio for 2024.

5. The coverage for the stocks listed on the New York Stock Exchange in a comparable time period was 5.1. Other things being equal, does AGF appear to have higher or lower interest coverage than others in its industry?