... and subsequently a negative net income. To finance the level of R & D AMT wants to do, increasing amounts of external financing are necessary. Using the assumptions outlined in the Exhibits 1 and 2, in 1988 a $32,767,000 loan will be necessary for the company to continue its operations. This is roughly four times the amount requested by Haskins. The ratio analysis, displayed in Exhibit 3, yielded the following results: Over the coming three years (86-88) AMT will continue to see negative returns on assets, indicating that the company is not generating any profits from its deployed assets. Low Debt to Assets ratio shows that AMT is not highly leveraged and has a low risk for running into problems with creditors. However, this means that AMT is very dependent on Equity which also has its risks. Even though Debt to Assets is somewhat positive news for creditors, AMT's Times Interest ...

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