Assume that debt service expenditures are $12.6 million and "own source" revenues are $84 million.  Calculate the Debt Service/ Revenue Ratio.   Is the ratio favorable?

Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter7: Analysis Of Financial Statements
Section: Chapter Questions
Problem 2P: Vigo Vacations has $200 million in total assets, $5 million in notes payable, and $25 million in...
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Assume that debt service expenditures are $12.6 million and "own source" revenues are $84 million.  Calculate the Debt Service/ Revenue Ratio.   Is the ratio favorable?  

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