Answered: Calculate Interest Coverage ratio from…

Calculate Interest Coverage ratio from the following details NPAT is 97,500 Tax Rate is 35% Debentures are 6,00,000 at 10%

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: A perpetuity has a PV of $25,000. If the interest rate is 11%, how much will the perpetuity pay…

A: A perpetuity is a cash flow that goes on forever. In other words the time period for a perpetuity is…

Q: Annual payment # of years Rate Output area: a) PV of ordinary annuity PV of annuity due b) FV of…

A: Annual Payment = pmt = $14,500Time = nper = 5Interest Rate = rate = 7.1%

Q: Calculate the simple interest earned. Round to the nearest cent. P = $5000, r = 6.8%, t = 25 days

A: Simple interest: As the name indicates it is a simple interest computed on the amount of principal.…

Q: Seven annual payments of $2,500 @ 6%. Please identify which table you used

A: An annuity is a series of identical payments occurring at equal time intervals. When…

Q: What is the PV of an annuity due with 5 payments of $5,700 at an interest rate of 6.1%? a.…

A: The objective of the question is to calculate the present value (PV) of an annuity due. An annuity…

Q: Using the tables provided, if an investment is made now for $19,200 that will generate a cash inflow…

A: Given, The investment is $19,200 Cash inflow is $6,400. Rate is 10%

Q: Following is a table for the present value of $1 at compound interest: Year 6% 10% 12% 1 0.943 0.909…

A: IRR measures the rate at which the investment (cash outflow) has generated the cash inflow. More the…

Q: You invest 185 000 TL to a bank deposit account at gross rate of %24.5 for 65 days. If the…

Q: Find the simple interest on $31,200 at 5.25% for 107 days. Assume 360 days in a year and 30 days in…

A: Simple interest is a method of calculating interest where the principal remains the same for each…

Q: Based on the following data, calculate the items requested: Rental Costs Annual rent Insurance…

A: Annual rent = $7,730Insurance = $180Security deposit = $825Annual mortgage payments =…

Q: Using the tables above, what would be the present value of $19,670 (rounded to the nearest dollar)…

A: Present value calculation involves determining the current worth of a future cash flow by…

Q: Based on the following data, calculate the items requested: Rental Costs Buying Costs Annual rent $…

A: Answer:- Capital budgeting is basically the process of evaluation of various alternatives available…

Q: 6. Determine the simple interest earned when $450 is Deposited for 4 years and earns 6.5% per year

A: Interest is earned on the money lent to the borrower. The lender charges interest from the borrower.…

Q: ar 6% 10% 12% 0.943 0.909 0.893 0.890 0.826 0.797 0.840 0.751 0.712 0.792 0.683 0.636 0.747 0.621…

A: Capital Budgeting techniques and methods are usually used to measure and evaluate the potential of…

Q: Following is a table for the present value of $1 at compound interest: Year 6% 10% 12% 1 0.943…

A: Present Value is the Value of one Dollar as of today which will be received in Future. For the…

Q: Calculate the cap rate using the following information. NOI is $10,000. Acquisition price is…

A: NOI=$10000Price=$100000Find out cap rate

Q: Based on the following data, calculate the items requested: Rental Costs Buying Costs Annual rent…

A: Comparing recurring expenses is necessary when deciding between purchasing and renting. The yearly…

Q: Calculate the simple interest earned. Round to the nearest cent. P = $2600, r = 5.9%, t = 6 months

A: Simple interest is the return which only the principal amount of the investment earns. There is no…

Q: A loan of 109,517.20 is being repaid with level annual payments of K at an annual effective interest…

A: A loan is being amortized by level payment. The quantum of principal repaid in a particular payment…

Q: Following is a table for the present value of $1 at compound interest: Year 6% 10% 12% 1 0.943…

A: >Present Value of the amount of future value that will be received in current period. >This is…

Q: Using Table 11-1, calculate the compound amount and compound interest (in $) for the investment.…

A: In finance, the concept of time value states that money today has more purchasing power than the…

Q: What is the fixed charge coverage ratio? Answer in the form of 5.0x (one decimal place...hint:…

A: Fixed charge coverage ratio measures the potential of the company to pay the fixed annual charges on…

Q: Following is a table for the present value of $1 at compound interest: Year 6% 10% 12% 1 0.943…

A: The present value indicates the current worth of the future cash flows at a specific rate. The PV of…

Q: Using the tables provided, the present value of $6,000 to be received at the end of each of the next…

A: Present value is referred to as what will be the current value of the future money. The future cash…

Q: What is the present value of RM34,580 perpetuity per year discounted at 7%? Select one: a.…

A: In this problem we need to compute the present value of RM34,580 perpetuity per year discounted at…

Q: How much interest is earned in 5 years on P50,000 deposited in a bank paying 3% interest per annum,…

A: Compound Interest = P(1+r/n)^nt - PWhere P = Principal = P50,000R = Rate on interest = 3%N = number…

Q: Using Table 11-1, calculate the compound amount and compound interest (in $) for the investment.…

A: An interest method in which current interest is computed by multiplying the interest rate by the sum…

Q: present value

A: The formula to calculate the present value of future cash flow is C/(1+r)n, where C is the cash…

Q: Total interest expended will be: a. OMR 50,400,000 b. OMR 45,000,000 c. OMR 55,000,000 d. OMR…

A: Interest is an incentive charged by the lender to the borrower for lending his money, interest…

Q: Calculate the simple interest earned. Round to the nearest cent. P = $7,000, r = 6.2%, t = 8 monthS

A: First, converting R percent to r a decimalr = R/100 = = 0.062 per year,Total no. of years = =…

Q: Calculate the simple interest earned. Round to the nearest cent. P = $3900, r = 5.3%, t = 6 months

A: P = $3900 r = 5.3% t = 6 monnths

Q: Calculate the simple interest earned. Round to the nearest cent. P = $5000, r = 9.5%, t = 20 days

A: Simple Interest = P * r * t where, P = $5000, r = 9.5%, t = 20/365

Q: Find the present value of each future amount 6.3% 5)$15, 402 for 120 day si money earns 5:

A: As per the concept of time value of money the worth of money changes with passage of time. This is…

Q: Calculate the simple interest earned. Round to the nearest cent. P = $3600, r = 5.3%, t = 6 months

A: The effective annual rate of interest is the actual or the real rate of interest paid or received…

Q: P = $809,100; R= 7.09%; n= 360 . Calculate monthly payment

A: > given :> Loan amount = $809,100> Interest rate = 7.09%> Number of paymenr (n) = 360

Q: What is the fixed charge coverage ratio? Answer in the form of 3.2x (one decimal place) Assume: 1.…

A: The fixed-charge coverage ratio demonstrates how effectively a business can use its earnings to…

Q: (d) BB&T offers an account with 5.69 % interest compounded quarterly. APY = Number (e) Navy Federal…

A: APY or annual percentage yield is the actual rate of return earned on the investment

Q: What is the PV of an annuity due with 5 payments of $4,500 at an interest rate of 5.5%?…

A: Present value is the current value of the amounts that can be made in future. If same cash flows…

Q: An investment of S6,560 earns interest at the rate of 5% and is compounded quarterly. What is the…

A: Investment = 6560 Interest rate = 5℅/4 = 1.25℅ per quarter N = 28 quarters (7 years)

Q: Below is a table for the present value of $1 at compound interest. Year 6% 10% 12% 1 0.943 0.909…

A: Present value means the discounted value of a future sum of money at a given interest/discount rate.…

Q: A certain investment earns P2,000 in 18 months at a rate of 8% simple interest. How much is the…

A: Simple interest is interest that is paid or calculated solely on the principal sum of money. It does…

Q: Following is a table for the present value of $1 at compound interest: Year 6% 10% 12% 1…

A: Present Value of annuity refers to the current value of a series of equal cash flows or payments at…

Q: Given: princial $10,000, interest rate 8%, time 240 days (use ordinary interest). Partial payments:…

A: Step 1: Calculate the initial interest accrued before the first paymentPrincipal: $10,000Interest…

Q: The interest accrued on $7,500 at 6% for 90 days is: (Use 360 days a year.) Multiple Choice O O…

A: Solution: Principal amount = $7,500 Interest rate = 6% Period = 90 days

Q: An amount of $6,880 is deposited into an account earning 3% interest compounded quarterly. How much…

A: Future Value: The future value is the amount that will be received at the end of a certain period.…

Concept explainers

Factors Affecting Housing Decision

Question

Calculate Interest Coverage ratio from the following details

NPAT is 97,500

Tax Rate is 35%

Debentures are 6,00,000 at 10%

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Based on the following data, calculate the items requested: Rental Costs Buying Costs Annual rent $ 7,530 Annual mortgage payments $ 10,100 (9,650 is interest) Insurance $ 160 Property taxes $ 1,840 Security deposit $ 725 Down payment/closing costs $ 4,800 Growth in equity $ 450 Insurance/maintenance $ 1,200 Estimated annual appreciation $ 1,850 Assume an after-tax savings interest rate of 5 percent and a tax rate of 26 percent. Assume this individual has other tax deductions that exceed the standard deduction amount. a. Calculate total rental cost and total buying cost. (Do not round intermediate calculations. Round your answers to the nearest whole dollar.) b. Would you recommend buying or renting? multiple choice Renting Buying
In the following balance sheet, Loan A(8%, 3 year)= $150 Deposit A(5%, 2 years)=$250Loan B(11%, 4 years)= $200 Deposit B(7%, 3 year)= $100Total Assets = $350 Total Liabilities = $350The GAP 3 yr=-200 if all interest rates decrease by 3%, net impact on net interest income (ΔNII) is a. +$6 b. +$7 c. +$8 d. +$9
Calculate the amount of interest that will be charged on $17120 borrowed for 6 months at 8.7%. (Calculate to the nearest cent)
None
If EBIT=6,000; interest expense=500, t=30%, and Ks=10%, then the value of S is equal to: a) 60,000 b) 55,000 c) 38,500 d) 48,500
Calculate the simple interest earned. Round to the nearest cent. P = $9080, r = 5.25%, t = 4 months $
Following is a table for the present value of $1 at compound interest: Year 6% 10% 12% 1 0.943 0.909 0.893 2 0.890 0.826 0.797 3 0.840 0.751 0.712 4 0.792 0.683 0.636 5 0.747 0.621 0.567 Following is a table for the present value of an annuity of $1 at compound interest: Year 6% 10% 12% 1 0.943 0.909 0.893 2 1.833 1.736 1.690 3 2.673 2.487 2.402 4 3.465 3.170 3.037 5 4.212 3.791 3.605 Using the tables provided, the present value of $6,453 (rounded to the nearest dollar) to be received at the end of each of the next 4 years, assuming an earnings rate of 12%, is
A debt of $52000 with interest at 9.6% compounded quarterly is to be repaid by equal payments at the end of every three months for five years. Calculate the size of the monthly payments,total amount paid and cost of financing. PV =$ I/Y= C/Y= i= n = PMT=$ AMOUNT PAID =$ COST OF FINANCING=$ 2 d.p. 2 d.p. 2 d.p.
3-75. Compute the effective annual interest rate in each of these'situations: (3.16) $1,500 $1,400 $1,300 $1,200 $1,100 $1,000 1 2. 3 6 7 8 EOY i = 30%/yr. is equivalent to
A loan of £100,000 is repaid in 11 annual instalments of £13,900, with the first repayment due in one year. What is the interest rate? i 数字 Enter a percentage correct to 1 decimal place. %
Following is a table for the present value of $1 at compound interest: Year 6% 10% 12% 1 0.943 0.909 0.893 2 0.890 0.826 0.797 3 0.840 0.751 0.712 4 0.792 0.683 0.636 5 0.747 0.621 0.567 Following is a table for the present value of an annuity of $1 at compound interest: Year 6% 10% 12% 1 0.943 0.909 0.893 2 1.833 1.736 1.690 3 2.673 2.487 2.402 4 3.465 3.170 3.037 5 4.212 3.791 3.605 Using the tables provided, the present value of $57,000 (rounded to the nearest dollar) to be received 3 years from today, assuming an earnings rate of 6%, is a.$71,501 b.$152,361 c.$47,880 d.$57,000
Ma1. An insurance company advertises that $2,483.76 will purchase a 8 year annuity that pays $200 semi-annually at the end of the period. What quarterly compounded rate of return does the investment earn? Note: Please make sure your final answer(s) are in percentage form and are accurate to 2 decimal places. For example 34.56% Rate of return = 0.00%