Use the following information to answer the next question.Total Asset = $40 millionBasic earning power (BEP)ratio is 20%Times-interest-earned (TIE) Principal payments = 4 millionratio is 6.55$1.35 million; $0.37 millionWhat is the company's EBIT? The company's interest expense?$3.33 million; $0.83 million$8.0 million; $0.62 millionDepreciation = $1.0 million.$7.5 million; $0.75 millionLease payments = 0.6 million$8.0 million; $1.22 million

Basic earnings power = Times Interest earned ratio = whereEBIT means Earnings before Interest and…

Use the following information to answer the next question. Total Asset = $40 million Basic earning power (BEP) ratio is 20% Depreciation = $1.0 million. Times-interest-earned (TIE) Principal payments = 4 million ratio is 6.55 O $1.35 million; $0.37 million O $3.33 million; $0.83 million Lease payments = 0.6 million What is the company's EBIT? The company's interest expense? O $8.0 million; $0.62 million O $7.5 million; $0.75 million O$8.0 million; $1.22 million

Use the following information to answer the next question. Total Asset = $40 million Basic earning power (BEP) ratio is 20% Depreciation = $1.0 million. Times-interest-earned (TIE) Principal payments = 4 million ratio is 6.55 O $1.35 million; $0.37 million O $3.33 million; $0.83 million Lease payments = 0.6 million What is the company's EBIT? The company's interest expense? O $8.0 million; $0.62 million O $7.5 million; $0.75 million O$8.0 million; $1.22 million

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Use the following information to complete the balance sheet below. Sales are $8.4 million, capital intensity ratio is 2.00 times, debt ratio is 60 percent, and fixed asset turnover is 1.50 times. (Enter your answers in millions of dollars rounded to 2 decimal places.) Assets Current assets Fixed assets Total assets Balance Sheet Liabilities and Equity Total liabilities Total equity Total liabilities and equity $ $ million million 0.00 million million million 0.00 million
ANSWER THE FOLLOWING INDEPENDENT QUESTIONS (SHOW COMPUTATION): ASSETS = LIABILITIES + EQUITY If accounts receivable are 25 percent of the total assets and notes payable are 1.5 times of accounts payable, how much is capital? If accounts payable are 12.5 percent of total assets, and capital is twice as much as accounts payable, how much are the notes payable? If equipment, net is 50% of total assets and capital is one-half of notes payable, how much is total liabilities?
(a) Calculate Return on Investment from the followingGross Profit Rs.100000, Office Expenses Rs. 10000, Selling and Distribution expenses Rs. 25000, Interest on Bank Loan Rs. 8000, Income tax Rs. 12000,Fixed Assets Rs. 300000, Current Assets Rs. 150000 & Current Liabilities Rs.125000(b) Calculate the earning per share from the following data15000 Equity Share of Rs. 10 each 15000010 % Preference Share Capital 100000Net Profit before Tax 55000.
Use the following information to complete the balance sheet below. Sales are $8.7 million, capital intensity ratio is 2.00 times, debt ratio is 65 percent, and fixed asset turnover ratio is 1.20 times. Note: Enter your answers in millions of dollars rounded to 2 decimal places. Current Assets = ? Fixed Assets = ? Total assets = ? Total liabilities = ? Total equity = ? Total liabilities and equity = ?
consider a company with sales of $18,000.0 million, cost of goods sold of 42% of sales, other expenses including salaries ( we usually call this SG&A for selling, general and administrative) of 1750.0million, depreciation of 2250.0 million, and interest expense of 2300 million. tax rate =21%. a. generate an income statement and show net income b. what is the company's operating cash flow? c. if there are 775.2 million shares outstanding, what is the EPS? d. if the company has a payout ratio of 20%, what is the dividends per share?
Lim Motors has sales of RM116,400, costs of goods sold of RM64,800, depreciation of RM7,100 and interest paid of RM3,800. The tax rate is 21%. What is the value of the cash coverage ratio? Select one: a. 13.58 b. 17.27 c. 12.14 d. 23.41
3. The total interest expense is half the Net Interest Income that is $225,000 which represent 80% from the adjusted operating income. The profit margin is 4.4% and the asset utilization ratio is 45% and the capitalization ratio is 25%. Then how much does ROE exceeds ROA of this Bank if the average earning assets are 65% from the total assets? choose the nearest choice * 1.98% 2.33% 5.94% 10% None of the above
Consider the following income statement: Sales $ 383,208Costs 249,312Depreciation 56,700Taxes 25% Calculate the EBIT. Calculate the net income. Calculate the OCF. What is the depreciation tax shield? Pls fast
Use this information for Mason Corporation to answer the question that follow. Mason Corporation had $1,030,000 in invested assets, sales of $1,275,000, income from operations amounting to $227,000, and a desired minimum return of 12%. Round the percentage to one decimal place. The profit margin for Mason Corporation is Oa. 22.0% Оb. 17.8% Oc. 12.0% Od. 80.8%
Use the following information to complete the balance sheet below. Sales are $8.4 million, capital intensity ratio is 2.00 times, debt ratio is 55 percent, and fixed asset turnover is 1.20 times. (Enter your answers in millions of dollars rounded to 2 decimal places.)
Suppose a firm has the following information: Operatingcurrent assets = $2.7 million; operating current liabilities =$1.5 million; long-term bonds = $3 million; net plant andequipment = $7.8 million; and other long-term operating assets =$1 million. How much is tied up in net operating workingcapital (NOWC)? ($1.2 million) How much is tied up in total netoperating capital? ($10 million)
Mari Mari Berhad has sales of RM29,000, total assets of RM17,500, and total debt of RM6,300. If the Net Profit Margin is 9%; a) What is the Net Income ? b) What is the Return on Asset ? c) What is the Return on Equities ?

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