Calculate New Chip’s Coverage ratios for 2022 using: a-Earnings before Interest and Tax (EBIT) ÷ Interest Expense (x) b- Earnings before Interest, Lease Expense and Tax ÷ Fixed Charges (Interest + Lease Expense) (x) Given New Chip’s Common Equity of $128 million at 12/31/22 and $116 million at 12/31/21, what was New Corp’s ROAE for 2022? (%)
Calculate New Chip’s Coverage ratios for 2022 using: a-Earnings before Interest and Tax (EBIT) ÷ Interest Expense (x) b- Earnings before Interest, Lease Expense and Tax ÷ Fixed Charges (Interest + Lease Expense) (x) Given New Chip’s Common Equity of $128 million at 12/31/22 and $116 million at 12/31/21, what was New Corp’s ROAE for 2022? (%)
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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Question
Calculate New Chip’s Coverage ratios for 2022 using:
a-Earnings before Interest and Tax (EBIT) ÷ Interest Expense (x)
b- Earnings before Interest, Lease Expense and Tax ÷ Fixed Charges (Interest + Lease Expense) (x)
Given New Chip’s Common Equity of $128 million at 12/31/22 and $116 million at 12/31/21, what was New Corp’s ROAE for 2022? (%)
Transcribed Image Text:Sales (net)
CofGS
Gross profit
Other expense
Depr&Amort
Lease expense
EBIT
Interest expense
PBT
Tax @ 26%
PAT
New Chip Corp Income Statement for 2022
($ in Millions)
504
352
152
89
21
10 |
11
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Ratio analysis is one of the technique used in management accounting under which several calculations are being done on financial statement numbers for decision making.
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