Assume the following data: EBIT = 100; Depreciation = 40; Interest = 20; Dividends = 10....
Assume the following data: EBIT = 100; Depreciation = 40; Interest = 20; Dividends = 10. Calculate the cash coverage ratio.
Select one:
a. 7.0x
b. 4.7x
c. 14.0x
d. 5.0x
(I am not sure if it is 5.0 or 7.0)
Homework Answers
![Cash coverage ratio = (EBIT + Depreciation ] + interest = 7.0 (100+40)/20](http://img.homeworklib.com/questions/f879d680-6f5d-11ea-a967-4d10e6086a34.png?x-oss-process=image/resize,w_560)
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Assume the following data: EBIT = 100; Depreciation = 40;
Interest = 20; Dividends = 10....
a. Debt Ratio 0% EBIT $ Less: Interest $ EBT $ Taxes @40% $ Net profit...
a.
Debt Ratio
0%
EBIT
$
Less: Interest
$
EBT
$
Taxes @40%
$
Net profit
$
Less: Preferred
dividends
$
Profits available to
common stockholders
$
# shares outstanding
$
EPS
$
Calculate the EPS below: (Round to the nearest dollar. Round
the EPS to the nearest cent.)
Debt Ratio
15%
EBIT
$
Less: Interest
$
EBT
$
Taxes @40%
$
Net profit
$
Less: Preferred
dividends
$
Profits available to
common stockholders
$
# shares outstanding
$...
Ziebart Corp.'s EBITDA last year was $250,000 ( = EBIT + depreciation + amortization), its interest...
Ziebart Corp.'s EBITDA last year was $250,000 ( = EBIT + depreciation + amortization), its interest charges were $9,500, it had to repay $26,000 of long-term debt, and it had to make a payment of $17,400 under a long-term lease. The firm had no amortization charges. What was the EBITDA coverage ratio? Select the correct answer. a. 3.51 b. 4.28 c. 5.05 d. 5.82 e. 6.59
Consider the following data. I/S 2015 2016 Sales (S) 1,200 1,320 (+10%) - Costs (C) (COGS...
Consider the following data. I/S 2015 2016 Sales (S) 1,200 1,320 (+10%) - Costs (C) (COGS & SG&A) 1,000 = EBITDA (=EBIT) 200 - Interest 20 =EBT 180 - Tax (T) 40 = NI 140 Dividend 40 Plowback 100 B/S Assets (A) 2,000 Debt (D) 800 Equity (E) 1,200 Common stock (CS) 800 Retained earnings (RE) 400(+100) From these data, calculate the following ratios, showing all work: Margin Cost = Turnover (TO) Interest Rate Tax Rate Leverage Assume that depreciation is included...
Income Statement Sales 900 COGS 550 Gross Margin 350 S&G 200 EBIT 150 Interest Exp 20...
Income Statement Sales 900 COGS 550 Gross Margin 350 S&G 200 EBIT 150 Interest Exp 20 Taxes 15 Net Income 115 # Shares 400 Balance Sheet Cash 400 Account Receivable 200 Inventory 100 Total Current Assets 700 Long Term Investments 500 Property Plant and Equipment 800 Goodwill 100 Total Assets 2100 Accounts Payable 220 Total Current Liabilities 300 Total Liabilities 1720 Stockholders' Equity Total Stockholders' Equity 380 Net Tangible Assets 280 Cash Flow Net Income 115 Depreciation 250 Total Cash...
Income Statement Sales $191,140 Costs Except Depreciation (99,590) EBITDA $91,550 Depreciation (6,010) EBIT $85,540 Interest Expense...
Income
Statement
Sales $191,140
Costs Except Depreciation (99,590)
EBITDA $91,550
Depreciation (6,010)
EBIT $85,540
Interest Expense (net) (570)
Pretax Income $84,970
Income Tax (29,740)
Net Income $55,230
Balance Sheet
Assets
Cash and Equivalents $15,070
Accounts Receivable 2,040
Inventories 4,070
Total Current Assets $21,180
Property, Plant and Equipment 9,980
Total Assets $31,160
Liabilities and Equity
Accounts Payable $1,510
Debt 3,940
Total Liabilities $5,450
Stockholders' Equity 25,710
Total Liabilities and Equity $31,160
I'm trying to find forecasted cost the answer I...
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Hi, please help me to check and see if I am on the right track.
(Specifically for "requirement 3", I don't know if I choose the
correct one, each blank for requirement 3 contains 2 options, one
is the one that I chose, the other one is completely opposite than
the one that I selected. please let me know the answer for
requirement 3 and help me to check if I am doing correct for
requirement 1 and 2) Thank...
1. Assume that Keisha's marginal tax rate is 40% and her tax rate on dividends is...
1. Assume that Keisha's marginal tax rate is 40% and her tax rate on dividends is 25%. If a city of Atlanta bond pays 6.3% interest, what dividend yield would a dividend-paying stock (with no growth potential) have to offer for Keisha to be indifferent between the two investments from a cash-flow perspective? please show your work I am lost.
MCH Corp. Income Statement Sales $ 500 COGS 300 Gross Profit 200 Operating Expenses 100 Depreciation...
MCH Corp. Income Statement Sales $ 500 COGS 300 Gross Profit 200 Operating Expenses 100 Depreciation 25 EBIT 125 Interest Expense 15 EBT 110 Taxes 25 NI 85 Dividends 0 ΔRE $85 MCH Corp. Balance Sheet Cash and Equivalents $50 Accounts Receivable 100 Inventory 75 Net Fixed Assets 75 Total Assets $300 Accounts Payable $35 Short-Term Notes Payable 5 Accruals 10 Long-Term Debt 150 Total Liabilities $200 Total Shareholders’ Equity $100 Liabilities and Shareholders’ Equity $300 What is the cash...
Windswept Woodworks, Inc. Input Data (millions of dollars) 448 1,292 Accounts receivable 6,642 Cash & equivalents...
Windswept Woodworks, Inc. Input Data (millions of dollars) 448 1,292 Accounts receivable 6,642 Cash & equivalents Common stock Cost of goods sold Depreciation expense Common stock dividends paid Interest expense Inventory Addition to retained earnings Long-term debt Notes payable Gross plant & equipment Retained earnings 1.196 746 2,486 Other current liabilities Tax rate Market price per share-year end Number of shares outstanding $ 17.50 500 million 500 million a. Interest coverage ratio (Assume that year 1 EBIT was 1.297 and...
Use the following to answer questions 9-10 120 100 40 20 40 0 80 100 120...
Use the following to answer questions 9-10 120 100 40 20 40 0 80 100 120 Income (billions 9. The above figure suggests that A) consumption would be $60 billion even if income were zero B) saving is zero at the $120 billion income level C) as income increases, consumption decreases as a peroentage of income D) as income increases, consumption decreases absolutely 10. Refer to the above figure. If the relevant saving schedule were constructed A) saving would be...
a.
Debt Ratio
0%
EBIT
$
Less: Interest
$
EBT
$
Taxes @40%
$
Net profit
$
Less: Preferred
dividends
$
Profits available to
common stockholders
$
# shares outstanding
$
EPS
$
Calculate the EPS below: (Round to the nearest dollar. Round
the EPS to the nearest cent.)
Debt Ratio
15%
EBIT
$
Less: Interest
$
EBT
$
Taxes @40%
$
Net profit
$
Less: Preferred
dividends
$
Profits available to
common stockholders
$
# shares outstanding
$...
Income
Statement
Sales $191,140
Costs Except Depreciation (99,590)
EBITDA $91,550
Depreciation (6,010)
EBIT $85,540
Interest Expense (net) (570)
Pretax Income $84,970
Income Tax (29,740)
Net Income $55,230
Balance Sheet
Assets
Cash and Equivalents $15,070
Accounts Receivable 2,040
Inventories 4,070
Total Current Assets $21,180
Property, Plant and Equipment 9,980
Total Assets $31,160
Liabilities and Equity
Accounts Payable $1,510
Debt 3,940
Total Liabilities $5,450
Stockholders' Equity 25,710
Total Liabilities and Equity $31,160
I'm trying to find forecasted cost the answer I...
Hi, please help me to check and see if I am on the right track.
(Specifically for "requirement 3", I don't know if I choose the
correct one, each blank for requirement 3 contains 2 options, one
is the one that I chose, the other one is completely opposite than
the one that I selected. please let me know the answer for
requirement 3 and help me to check if I am doing correct for
requirement 1 and 2) Thank...
Windswept Woodworks, Inc. Input Data (millions of dollars) 448 1,292 Accounts receivable 6,642 Cash & equivalents Common stock Cost of goods sold Depreciation expense Common stock dividends paid Interest expense Inventory Addition to retained earnings Long-term debt Notes payable Gross plant & equipment Retained earnings 1.196 746 2,486 Other current liabilities Tax rate Market price per share-year end Number of shares outstanding $ 17.50 500 million 500 million a. Interest coverage ratio (Assume that year 1 EBIT was 1.297 and...
Use the following to answer questions 9-10 120 100 40 20 40 0 80 100 120 Income (billions 9. The above figure suggests that A) consumption would be $60 billion even if income were zero B) saving is zero at the $120 billion income level C) as income increases, consumption decreases as a peroentage of income D) as income increases, consumption decreases absolutely 10. Refer to the above figure. If the relevant saving schedule were constructed A) saving would be...
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