MPI Incorporated has $6 billion in assets,and its tax rate is 35 %. Its basic earningpower (BEP) ratio is 9 %, and its return onassets (ROA) is 5%. The data has beencollected in the Microsoft Excel Online filebelow. Open the spreadsheet and performthe required analysis to answer the questionbelow. What is MPI's times - interest -earned (TIE) ratio? Round your answer totwo decimal places.

Times interest earned ratio is calculated by dividing the earnings before interest and tax (EBIT) by…

Answered: MPI Incorporated has $6 billion in…

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

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter6: Accounting For Financial Management

Section: Chapter Questions

Problem 3P

See similar textbooks

Related questions

Q: Blossom Systems has total assets of $ 34.050 billion, total debt of $ 8.745 billion, and net sales…

A: 1) Calculation of Net Income $ billion Net Income = Net Sales x Net Profit Margin Net Income =…

Q: You have the following data for a company. What is the return on assets (ROA)? Return on equity =…

A: Return on Assets (ROA): It represents the profitability of the firm in relation to the total assets…

Q: MPI Incorporated has $6 billion in assets, and its tax rate is 35%. Its basic earning power (BEP)…

A: Formula: TIE ratio=EBITInterest expense

Q: Suppose Ningbo Steel has sales revenue of $11,000 sales revenue, cost of goods sold off $5000,…

A: Given information : sales revenue = $11,000 cost of goods sold = $5000 operating expenses = $1000…

Q: Thomson Trucking has $16 billion in assets, and its tax rate is 40%.Its basic earning power (BEP)…

A: The time's interest earned ratio is the ratio which shows the ability of the company to meet the…

Q: Pro-Forma Income Statement Sales Cost of goods sold Gross profit Operating expenses Net operating…

A: calculation of cost of goods sold = 62% of 14800000 = $ 9176000 calculation of sales and operating…

Q: In the past year, TVG had revenues of $2.95 million, cost of goods sold of $2.45 million, and…

A: Times Interest Earned = Earnings Before Interest and Tax/ Interest Expense

Q: Lions Corp's sales last year were $27,000, and its total assets were $16,000. What was its total…

A: Total Asset Turnover Ratio = Total Sales/ Average Assets

Q: Macon Mills is a division of Bolin Products, Inc. During the most recent year, Macon had a net…

A: Given, Net Income = $36 million Interest Expense = $2,300,000 Tax Rate = 40%

Q: Terry's Markets has sales of $684,000, costs of $437,000, interest paid of $13,800, total assets of…

A: Return on equity refers to the return that is being earned by the investors over the investment that…

Q: Green Fire, Inc., has sales of $60 million, total assets of $42 million, and total debt of $18…

A: The return on assets is reflective of profitability ratio which will help in finding out the rate of…

Question

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.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1: Introduction

VIEW

Step 2: Finding the EBIT

VIEW

Step 3: Finding net income

VIEW

Step 4: Finding the interest expense

VIEW

Step 5: Finding the times interest earned ratio (TIE) ratio

VIEW

Solution

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 6 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.

Similar questions

Excel Online Structured Activity: TIE ratio MPI Incorporated has $6 billion in assets, and its tax rate is 35%. Its basic earning power (BEP) ratio is 10%, 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. X
Can you please answer the financial accounting question?
Please answer as quickly as possible
If our gross profit is $97,218,350 and our adjusted revenue is $123,518,520 what is our profit margin (use an excel spreadsheet to get your answer, enter your answer as a percent, round to 1 decimal place)?
Give only typing answer with explanation and conclusion Byron Books Inc. recently reported $18 million of net income. Its EBIT was $34.3 million, and its tax rate was 25%. What was its interest expense? (Hint: Write out the headings for an income statement, and then fill in the known values. Then divide $18 million of net income by (1 - T) = 0.75 to find the pretax income. The difference between EBIT and taxable income must be interest expense. Use this same procedure to complete similar problems.) Write out your answer completely. For example, 25 million should be entered as 25,000,000. Round your answer to the nearest dollar, if necessary. Do not round intermediate calculations.
Hello, just need help on net income and return on equity
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 %
Rick’s Travel Service has asked you to help piece together financial information on the firm for the most current year. Managers give you the following information: sales are $7.5 million, total debt is $3.00 million, debt ratio is 55 percent, and ROE is 17.2 percent. Using the above information, calculate Rick’s ROA. (Round your answer to 2 decimal places.) ROA _________ %
Required: Compute the DuPont ratlos (profit margin, asset turnover, and financial leverage ratlos) for Amazon and Kroger given these numbers for 2012-2017. Check your numbers to make sure that Profit margin x Asset turnover Financial leverage = Return on equity. (Negative amounts should be entered with a minus sign. Round your answers to 4 decimal places.) Data: Problem 6-2 Data.xlsx. (Students can download this data file solve this problem.) AMZN KR Year 2017 2016 2015 2014 2013 2012 Year 2017 2016 2015 2014 2013 2012 2017 2016 2015 2014 2013 2012 2017 2016 2015 2014 2013 2012 Year Year Sales Revenue $177,866,000,000 $135,987,000,000 $107,006,000,000 $ 596,000,000 $ 88,988,000,000 $ (241,000,000) $54,505,000,000 $ 74,452,000,000 $ 274,000,000 $ 40,159,000,000 $ 61,093,000,000 $ (39,000,000) $32,555,000,000 Sales Revenue $122,662,000,000 $115,337,000,000 $109,830,000,000 $108,465,000,000 $ 98,375,000,000 $ 96,619,000,000 Net Income Assets $131,310,000,000 $ 3,033,000,000 $…
Terry's Markets has sales of $684,000, costs of $437,000, interest paid of $13,800, total assets of $712,000, and depreciation of $109,400. The tax rate is 21 percent and the equity multiplier is 1.6. Please use the Dupont Identity to compute the return on equity.
Keller Cosmetics maintains an operating profit margin of 8.15% and a sales-to-assets ratio of 3.20. It has assets of $530,000 and equity of $330,000. Assume that interest payments are $33,000 and the tax rate is 30%. a. What is the return on assets? b. What is the return on equity? Note: For all requirement, enter your answers as a percent rounded to 2 decimal places. a. Return on assets b. Return on equity % %
Loreto Incorporated has the following financial ratios: asset turnover = 1.60; net profit margin (i.e., net income/sales) = 6%; payout ratio = 25%; equity/assets = 0.80. What is Loreto's sustainable growth rate? What is its internal growth rate? Note: Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.