In 2016, Natural Selection, a nationwide computer dating service, had $506 million of assets and $203 million of liabilities. Earnings before interest and taxes were $123 million, interest expensewas $28 million, the tax rate was 40 percent, principal repayment requirements were $24 million, and annual dividends were 20 cents per share on 21 million shares outstanding.a. Calculate the following for Natural Selection: (Round your answers to 2 decimal places.)Liabilities-to-equity ratioTimes-interest-earned ratioTimes burden coveredb. What percentage decline in earnings before interest and taxes could Natural Selection have sustained before failing to cover: (Round your answers to 1 decimal place.)Interest payment requirements?Principal and interest requirements?%%Principal, interest, and common dividend payments?%

The questions pertain to the various financial ratios specifically solvency ratios. It determines…

Answered: In 2016, Natural Selection, a…

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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MPI Incorporated has $5 billion in assets, and its tax rate is 35%. Its basic earning power (BEP) ratio is 12%, and its return on assets (ROA) is 3%. The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the question What is MPI's times-interest-earned (TIE) ratio? Round your answer to two decimal places.
In 2020, Natural Selection, a nationwide computer dating service, had $502 million of assets and $201 million of liabilities. Earnings before interest and taxes were $121 million, interest expense was $29 million, the tax rate was 40 percent, principal repayment requirements were $25 million, and annual dividends were 25 cents per share on 20 million shares outstanding. What percentage decline in earnings before interest and taxes could Natural Selection have sustained before failing to cover: Note: Round your answers to 1 decimal place. Interest payment requirements? Principal and interest requirements? Principal, interest, and common dividend payments?
Home Depot entered fiscal 2017 with a total capitalization of $21,883 million. In 2017, debt investors received interest income of $870 million. Net income to shareholders was $8,633 million. (Assume a tax rate of 21%.) Calculate the economic value added assuming its cost of capital is 10%. (Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places.
For the year ended December 31, 2022, Settles Incorporated earned an ROI of 8.8 %. Sales for the year were $9 million, and average asset turnover was 2.2. Average stockholders' equity was $2.9 million. Required: a. Calculate Settles Incorporated's margin and net income. Note: Round "Margin" answer to 1 decimal place. Enter the net income answer in dollars, i.e., $5 million should be entered as 5,000,000. b. Calculate Settles Incorporated's return on equity. Note: Round your answer to 1 decimal place. a. Margin a. Net income % b. Return on equity %
C Company has the following data for the year ending 12/31/2020 (dollars are in thousands): Net income = $600; EBIT = $1,184; Total assets = $3,000; Short-term investments = $200; Total capital employed = $2,193; and tax rate = 30%. The company’s WACC is 11.07%. What was its Economic Value Added (EVA) for the year 2020? Round your answer to the nearest dollar. Group of answer choices: $583 $586 $577 $572 $580
MPI Incorporated has $6 billion in assets, and its tax rate is 35 %. Its basic earning power (BEP) ratio is 9 %, and its return on assets (ROA) is 5%. The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the question below. What is MPI's times - interest - earned (TIE) ratio? Round your answer to two decimal places.
CoinSoft was a company that developed software to manage portfolios of cryptocurrencies. In 2021, the company's revenue was $14 million. In 2022, customers paid for $4 million in upgrades. In the same year, there were $0.5 million in downgrades and $0.8 million in reduced revenue from customers who went out of business themselves or switched to a competitor. Calculate the net dollar retention in percentage form? The correct answer is 119.3, please explain fully
MPI Incorporated has $6 billion in assets, and its tax rate is 35%. Its basic earning power (BEP) ratio is 8%, and its return on assets (ROA) is 4%. The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the question below. X Open spreadsheet What is MPI's times-interest-earned (TIE) ratio? Round your answer to two decimal places.
Green Technologies is a leading global end-to-end technology provider, with a portfolio of hardware, software and service solutions. In a recent annual report, the balance sheet included the following information ($ in millions): Current assets: Receivables, less allowance of $289 in 2020 and $280 in 2019 Req 1 In addition, the income statement reported sales revenue of $105,232 million for the current year. All sales are made on a credit basis. The statement of cash flows indicates that cash collected from customers during the current year was $104,868 million. There could have been significant recoveries of accounts receivable previously written off. Required: 1. Compute the following ($ in millions): Req 2A 2020 a. The amount of bad debts written off by Green during 2020 (Hint. Treat it as a plug in the gross accounts receivable account). b. The amount of bad debt expense that Green included in its income statement for 2020 (Hint. Treat it as a plug in the allowance for…
Allianze Ltd has the following data information as of 30 June 2022: • Current assets of $ 6,970 • Net fixed assets of $18,700 • Current liabilities of $4,570 • Long term debts of $9,490. Required: How much is net working capital of the company? Calculate the return on assets of the company given the return on equity is 20%
For the year ended December 31, 2022, Settles Incorporated earned an ROI of 10.5%. Sales for the year were $9 million, and average asset turnover was 2.1. Average stockholders' equity was $2.8 million. Required: Calculate Settles Incorporated's margin and net income. Note: Round "Margin" answer to 1 decimal place. Enter the net income answer in dollars, i.e., $5 million should be entered as 5,000,000. Calculate Settles Incorporated's return on equity. Note: Round your answer to 1 decimal place.
In April 2013, General Electric (GE) had a book value of equity of $123.4 billion, 10.3 billion shares outstanding, and a market price of $20.55 per share. GE also had cash of $91.5 billion, and total debt of $394.7 billion. What was GE′s enterprise value? (Round to one decimal place.) I want answer within 2 hrs

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