Crystal rock holdings $510000 of sales $262500 off operation cost other than depreciation $10200 of depreciation The company had $600000 off bond outstanding that carry a 6.8% interest rate and its income tax rate was 40% What was the firms times interest earned?
Crystal rock holdings $510000 of sales $262500 off operation cost other than depreciation $10200 of depreciation The company had $600000 off bond outstanding that carry a 6.8% interest rate and its income tax rate was 40% What was the firms times interest earned?
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
Crystal rock holdings
$510000 of sales
$262500 off operation cost other than depreciation
$10200 of depreciation
The company had $600000 off bond outstanding that carry a 6.8% interest rate and its income tax rate was 40%
What was the firms times interest earned?
Expert Solution
Step 1: Given:
Here,
Sales is $510000
Operating Cost other tha depreciation is $262,500
Depreciation is $10,200
Outstanding Bond is $600,000
Interest Rate is 6.8%
Tax Rate is 40%
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