Brown Office Supplies recently reported $4422 in Net Income. It had $9,000 of bonds outstanding that carry a 7.0% interest rate, and its federal-plus-state income tax rate was 40%. How much was EBIT?. O $8,918 DO $5,749 O $8,033 $8000 O $7,223

Brown Office Supplies recently reported $4422 in Net Income. It had $9,000 of bonds outstanding that carry a 7.0% interest rate, and its federal-plus-state income tax rate was 40%. How much was EBIT?. O $8,918 DO $5,749 O $8,033 $8000 O $7,223

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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Little Books, Inc. recently reported 3.100 million USD of net income. The firm's EBIT was 6.400 million USD. The firm's average tax rate was 40.0%. Calculate the interest expense.
Company R generates $2,400 net income. Assume that the company pays $2,000 interests on its debts and 40% taxes on earnings before taxes. What is the Times-Interest-Earned (TIE) Ratio of Company R?.
Green Office Supplies recently reported $15,500 of sales, $8,250 of operating costs other than depreciation, and $1,750 of depreciation. It had $9,000 of bonds outstanding that carry a 7.0% interest rate, and its federal-plus-state income tax rate was 40%. How much was the firm's earnings before taxes (EBT) * $4,627 $5,638 $5,114 $5,369 $4,870 Mori Company's net income last year was $25,000 and cash dividends declared and paid to the company's stockholders totaled $10,000. Changes in selected balance sheet accounts for the year appear below: Increases (Decreases) Debit balances: Accounts receivable $(6,000) Inventory $2,000 Prepaid expenses $(1,000) Long term investments $20,000 Credit balances: Accumulated depreciation $12,000 Accounts payable $9,000 Taxes payable $(5,000) Based solely on this information, the net cash provided by operations under the indirect method on the statement of cash flows would be: * $46,000 $36,000 $37,000 $4,000
Buchanan Corporation is refunding $11 million worth of 11% debt. The new bonds will be issued for 8%. The corporation's tax rate is 40%. The call premium is 10%. What is the net cost of the call premium after taxes? Multiple Choice $664, 500 $660, 000 $695,000 $675,000
Buchanan Corporation is refunding $14 million worth of 11% debt. The new bonds will be issued for 8%. The corporation's tax rate is 36%. The call premium is 10%. What is the net cost of the call premium after taxes? Multiple Choice $900,500 $931,000 $911,000 $896,000
Buchanan Corporation is refunding $13 million worth of 11% debt. The new bonds will be issued for 9%. The corporation's tax rate is 31% . The call premium is 10% . What is the net cost of the call premium after taxes? Multiple Choice $901, 500 $932, 000 $912, 000 $897,000
1. Tommy’s Woodworking had sales of $4 million this past year. Its COGS was $2.75 million and its operating expenses were $800,000. Interest expenses on outstanding debt were $200,000 and the company paid $40,000 in stock dividends. Its tax rate is 35%. What was the company’s taxable income (EBT) and tax liability (tax expense)?
The Little Books Inc. recently reported $3 million of net income. The company’s EBIT was $6 million and the corporate tax rate was 40%. Calculate the firm’s interest expense.
40. JoelEmbi, Inc. has an ROA (return on assets) of 15.2 percent, total assets of $4,500,000 and a net profit margin of 7.6 percent. What are JoelEmbi, Inc.'s annual sales? Enter your answer a whole number (i.e., rounded to zero decimal places. 41. JimmyButle, LLC. has a debt-to-total assets ratio of 39.6%. What is the company's debt-to-equity ratio? Enter your answer as a ratio (that is, do not convert to a percent), rounded to 2 decimal places. 42. JohCol, Inc has a debt ratio of 27.0% and ROE = 20.2%. What is JohCol, Inc.'s ROA? Enter your answer as a percent rounded to 1 decimal place. Enter 43. PauGeo, Inc. has an ROA of 18.2% and a debt/equity ratio of 0.83. The firm's ROE is answer as a percent rounded to 1 decimal place. 44. Assume that TraeYoung, Inc. has: Debt ratio 60% ● Net profit margin = 15.2% ● Return on assets (ROA) = 52% Find Trae Young's Total Asset Turnover ratio. Enter answer as a ratio (that is, do not convert to a percent), rounded to 2 decimal places.
Hello. I need help with the following question please. To calculate the after-tax cost of debt, multiply the before-tax cost of debt by(1 – T) . Omni Consumer Products Company (OCP) can borrow funds at an interest rate of 9.70% for a period of four years. Its marginal federal-plus-state tax rate is 45%. OCP’s after-tax cost of debt is 5.34% (rounded to two decimal places). At the present time, Omni Consumer Products Company (OCP) has 5-year noncallable bonds with a face value of $1,000 that are outstanding. These bonds have a current market price of $1,050.76 per bond, carry a coupon rate of 10%, and distribute annual coupon payments. The company incurs a federal-plus-state tax rate of 45%. If OCP wants to issue new debt, what would be a reasonable estimate for its after-tax cost of debt (rounded to two decimal places)? 3.83% 5.75% 4.79% 4.31%
Over the last 2 years a corporations debt grew by 1615524. Calculate the average rate at which the companys debt was growing in cents per minute. Round answer to nearest hundredth.
BEP, ROE, AND ROIC Broward Manufacturing recently reported the following information: Net income $615,000 ROA 10% Interest expense $202,950 Accounts payable and accruals $950,000 Broward’s tax rate is 25%. Broward finances with only debt and common equity, so it has no preferred stock. 40% of its total invested capital is debt, and 60% of its total invested capital is common equity. Calculate its basic earning power (BEP), its return on equity (ROE), and its return on invested capital (ROIC).

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