Lever Age pays a 10% rate of interest on $9.90 million of outstanding debt with face value of $9.9 million. The firm's EBIT was $2.1 million. If depreciation is $190,000, what is its cash coverage ratio?
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- Lever Age pays an 10% rate of interest on $10.20 million of outstanding debt with face value $10.2 million. The firm's EBIT was $1.2 million. a. What is its times interest earned? (Round your answer to 2 decimal places.) > Answer is complete but not entirely correct. Times interest earned 0.01 X b. If depreciation is $220,000, what is its cash coverage ratio? (Round your answer to 2 decimal places.) > Answer is complete but not entirely correct. Cash coverage ratio 0.01 XLever Age pays a(n) 8% rate of interest on $10.6 million of outstanding debt with face value $10.6 million. The firm’s EBIT was $1.6 million. a. What is times interest earned? (Round your answer to 2 decimal places.) Times interest earned b. If depreciation is $260,000, what is cash coverage? (Round your answer to 2 decimal places.) Cash coverage c. If the firm must retire $360,000 of debt for the sinking fund each year, what is its “fixed-payment cash-coverage ratio” (the ratio of cash flow to interest plus other fixed debt payments)? (Round your answer to 2 decimal places.) Fixed-payment cash-coverage ratioPeterson Packaging Corp. has $9 billion in total assets. The company's basic earning power (BEP) ratio is 9 percent, and its times interest earned ratio is 3.0. Peterson's depreciation and amortization expense totals $1 billion. It has $0.6 billion in lease payments and $0.3 billion must go towards principal payments on outstanding loans and long-term debt. What is Peterson's EBITDA coverage ratio?
- Harriett Industries has $7.5 billion in total assets. The company’s basic earning power (BEP) ratio is 10 percent, and its times interest earned ratio is 2.5. Harriett’s depreciation and amortization expense totals $1.25 Billion. It has $775 Million in lease payments and $500 Million must go toward principal payments on outstanding loans and long-term debt. What is Harriett’s EBITDA coverage ratio?Suppose a firm has the following information: Sales = $10million; costs of goods sold (excluding depreciation) = $5 million;depreciation = $1.4 million; other operating expenses = $2 million;interest expense = $1 million. If the tax rate is 25%, what is NOPAT,the net operating profit after taxes? ($1.2 million)Alpha Corporation has average annual free cashflows to the equity holder and to the firmof P3,000,000 and P3,350,000 respectively. Assuming that the weighted average cost ofcapital and actual return of on assets is 16.75% while the market return on Alpha's debt is7%, what is the value of its equity? a. P34,358,974.36 b.P15,000,000.00 c.P17,910,447.76 d.P20,000,000.00
- Calculate a firm's free cash flow if it has net operating profit after taxes of P60,000, depreciation expense of P7,000, an interest expense of P1,000, a net fixed asset investment of P30,000, a net current asset requirement of P15,000 and a tax rate of 30%.Use the following information to answer the next question. Total Asset = $40 million Basic earning power (BEP) ratio is 20% Times-interest-earned (TIE) Principal payments = 4 million ratio is 6.55 $1.35 million; $0.37 million What is the company's EBIT? The company's interest expense? $3.33 million; $0.83 million $8.0 million; $0.62 million Depreciation = $1.0 million. $7.5 million; $0.75 million Lease payments = 0.6 million $8.0 million; $1.22 millionOblib Inc. has a debt-equity ratio of 2, and a weighted average flotation cost of 4%. What is the dollar flotation cost if the company were to raise $1.5 million in the capital market? Please if you can, show all calculations
- PT. Sentosa Raya uses its own capital and debt capital. The agreed cost of debt is 10% and the interest to be paid on the debt is Rp. 3,000,000. The company earned an operating profit of Rp. 24,000,000 per year. The expected return is 30% per year. With these data, determine the value of the company and the company's cost of capital!If Campbell were to purchase a new warehouse for 1.1 million and finance it entirely with long-term debt, what would be the firm's new debt ratio? The new debt ratio will be account payable 495,000 notes payable 243,000 current liabilities 738,000 long term debt 1,207,000 common equity 5,079,000 total liabilities and equity 7,024,000MedCorp's free cash flow to equity is P350 million and the firm's net debt increased by 20 million. It is reported that the firm's interest expense is P48 milion and it is assumed that its tax rate is 20%. The market capitalisation rate is 18% Calculate the Free Cash Flow to the Firm (FCFF) and market value of equity if its payout ratio is assumed to be 0.45 and the return on equity is 30 %? The weighted average cost of capital is estimated to be 18%. [Assume the free cash flow to equity grows indefinitely at the projected growth rate.
