Consider the following income statement for Larry & Harry drug stores: Revenue - 90mm Variable costs- 48mm Interest on debt- 6mm Depreciation- 0 mm It’s tax rate is 25% and the book value of its equity is 150mm. What is L&H’s coverage ratio? A) 0.18 B) 5.25 C) 6 D) 7 E) 8 F)15

Q: The Oriole Timber Company has the following ratios: Net sales/Total assets-2.76; ROA-9.74 % ;…

A: Net sales/Total assets = 2.79ROA = 9.74%ROE = 15.7%The profit margin is

Q: A firm has an ROE of 4%, a debt-to-equity ratio of 0.9, and a tax rate of 35% and pays an interest…

A: Variables in the question: ROE=4%Debt-to-equity=0.9Tax rate=35%Interest rate=7%

Q: Provide answer

A: Step 1:To find Philips' Return on Assets (ROA), we need to understand the relationship between ROA,…

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A: Step 1: Understand the formula for the given ratios: Return on Equity = Net Income/ Total EquityDebt…

Q: What does the interest earned versus the fixed charge coverage indicate about each company? Why is…

A: The Interest Earned ratio assesses a company's capacity to fulfill its payment obligations on a…

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A: If you have any help please let me know in comment box and then I will help you.

Q: The Digital Warehouse has an outstanding debt of R580 000 with an interest rate of 9, 15%. The…

A: The objective of the question is to calculate the Times Interest Earned (TIE) ratio for the company.…

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A:

Q: Suppose we have the following information: Sales = $112,851 Assets = $131,468 Net profit margin…

A: Return on equity is the ratio of net income to the value of equity. Return on equity measures the…

Q: BC Supply is looking at relaxing their credit standards. Using the

A: Companies gives credit to customers to increase sales but giving credit is risky and it increase the…

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A: Explanation of Return on Assets:Return on Assets (ROA) measures how efficiently a company uses its…

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A: Step 1:  Step 2: Step 3: Step 4:

Q: A firm has a tax burden of 0.7. a leverage ratio of 1.3, an interest burden of .8, and a…

A: We need to use Du Pont method to calculate ROE. The equation isROE = Tax burden ratio*Interest…

Q: Want answer

A: Step 1: GivenDept ratio = 15 % = 0.15ROE = 13 % = 0.13ROA = ? Step 2: Formula usedDebt ratio = Total…

Q: Harmony Sego has a tax rate of 21%, the interest rate on debt is 10%, and the WACC is 15%. If the…

A: WACC:  "Weighted average cost of capital" represents the cost of capital from all of the sources of…

Q: Need Help with this Question

A: Step 1: To find the return on equity (ROE), we can use the following formula: ROE=EquityNet…

Q: Rental Costs Annual rent Insurance Security deposit Buying Costs Annual mortgage payments Property…

A: Understanding the costs associated with renting or buying is crucial for making informed decisions…

Q: The Digital Warehouse has an outstanding debt of R580 000 with an interest rate of 9, 15%. The…

A: The objective of the question is to calculate the Times Interest Earned (TIE) ratio for the company.…

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A: To calculate the firm's Return on Assets (ROA), we need to use the following formula:Given:Profit…

Q: QUESTION: CATHERINE'S CONSULTING HAS NET INCOME OF $4,400 AND TOTAL EQUITY OF $39,450. THE…

A: Given Data:Net Income: $4,400Total Equity: $39,450Debt-Equity Ratio: 1Step 1: Calculate Total…

Q: provide answer with explanation

A: To find the ROE, we first need to determine the firm's net income. Given the times interest earned…

Q: Based on the ratio analysis below, in which company would you be willing to invest and why?…

A: Ratio analysis is an important which an investor can use to analyze the better investment…

Q: what is the firm?s ROA?

A: Return on Assets (ROA) is an important tool used by the business for determining the profitability…

Q: Want Correct choice

A: Given dataLong-term debt / Total Assets = 0.37 => Long-term debt = 0.37*Total Assets Current…

Q: 2. What would be the WACC if the company in question 1 changed its debt-to-equity ratio to zero?

A: The debt to equity ratio is the proportion of debt of total equity in total invested capital. It is…

Q: Question: Philips, Inc. has a debt ratio of 15% and ROE =13%. What is Phillips' ROA?

A: To find Philip's Return on Assets (ROA), we can use the relationship between Return on Equity (ROE),…

Q: Consider the following data (in millions) from Trident Financial Inc., which has two main divisions,…

A: Residual income = Operating income - Minimum required return in amounts

Q: Consider the following simplified financial statements for the Wims Corporation (assuming no income…

A: Income Statement :— It is one of the financial statement that shows profitability, total revenue and…

Q: Please answer the question

A: Step 1: Step 2: Step 3: Step 4:

Q: Assume that the net profit margin = 9%, assets are 95 cents for every dollar of sales, and equity is…

A: ROE (DuPont Model) = Net Profit Margin x Asset Turnover x Equity Multiplier   Where, Net Profit…

Q: Provide answer

A: Approach to solving the question: To solve the problem ->Understand the relationship : Recognize…

Q: Mak Cosmetics maintains an operating profit margin of 10% and asset turnover ratio of 2.5. If Mak…

A: ROE:Return on equity can be referred as the measure of return on equity where the net income of the…

Q: Using the Du Pont method, evaluate the effects of the following relationships for the Butters…

A: a). Return on assets = Profit margin×Asset turnover Therefore, Asset turnover = Return on…

Q: The most recent financial statements for Crosby, Incorporated, appear below. Interest expense will…

A: Interest expense, tax rate and the dividend payout rate will also remain constant.Costs and other…

Q: What is the WACC for the following company with: Debt rate: 7% Cost of Equity: 11% Percentage…

A: WACC WACC shows the after-tax cost of the capital raised from all sources by a company. It shows…

Q: need the answer with explanation

A: