The Digital Warehouse has an outstanding debt of R580 000 with an interest rate of 9, 15%. The company's sales amount to R4 290 000, the tax rate is 40%, and the net profit margin is 3,5%. What is the company's times interest earned ratio? 1. 1, 13 times 2. 4,70 times 3. 5, 72 times 4. 7,93 times

The Digital Warehouse has an outstanding debt of R580 000 with an interest rate of 9, 15%. The company's sales amount to R4 290 000, the tax rate is 40%, and the net profit margin is 3,5%. What is the company's times interest earned ratio? 1. 1, 13 times 2. 4,70 times 3. 5, 72 times 4. 7,93 times

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

See similar textbooks

Related questions

Q: The Dog House has net income of $3,450 and total equity of $8,600. The debt-equity ratio is .60 and…

A: Return on asset = Return on equity/(1+Debt equity ratio) Return on equity = Net Income/Total equity…

Q: Chutes & Co. has interest expense of $1.05 million and an operating margin of 11.9% on total sales…

A: Interest rate ratio (ICR) is a financial measure of a company's ability to meet interest payments on…

Q: Provide answer

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

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.…

Q: Keller Cosmetics maintains an operating profit margin of 5% and asset turnover ratio of 6. a. What…

A: We need to use below equations to solve above problems.ROA = Operating profit margin* Assets…

Q: Red Company has total interest charges of $10,000 per year, sales of $1 million, a tax rate of 40…

A: Interest expenses = $10,000 Sales = $1,000,000 Tax rate = 40% Net profit ratio = 6% Profit before…

Q: ABC Company has sales of $500,000, COGS of $250,000, operating expenses of $200,000, net income of…

A: Formula: Times interest ratio = Operating income / interest expense

Q: The interest coverage ratio is times.

A: Interest coverage ratio is a financial metric that helps in determining the ability of a business…

Q: Find the WACC given the following information: A firm has a cost of equity of 8% and cost of debt of…

A: Weighted average cost of capital generally referred to by its abbreviation 'WACC' is the average…

Q: A firm has the following accounts; sales = $36,700,000, total debt = $9,870,000. The firm has the…

A: ROA refers to return on assets. It is a metric in ratio analysis to evaluate the efficiency of total…

Q: Vigo Vacations has $300 million in total assets, $5 million in notes payable, and $31 million in…

A: Given, Total Assets = $ 300 M Notes Payable = $ 5 M Long term debt = $ 31 M

Q: The First National Bank of Trinidad reports a net interest margin of 5.83 percent. It has total…

A: Given: Interest revenue =$275 millionTotal expenses =$210 millionEarning assets =$1115Interest…

Q: Bolero Corporation has one long term loan (interest bearing debt) of $700,000 at an interest rate of…

A: Given: Particulars Amount Rate Debt $700,000 5.20% Equity $1,000,000 16.00%

Q: ADM Ply Ltd has Total Assets of R850 000. Debt ratio for the firm is 80% of which 70% is long term…

A: “Since you have posted a question with multiple sub parts, we will provide the solution only to the…

Q: A firm has an ROE of 2%, a debt/equity ratio of 0.6, a tax rate of 30%, and pays an interest rate of…

A: A financial term known as operating return on assets, or ROA, gauges how profitable and efficient an…

Q: Question:1 Rafi Company has the following data: Total Asset/ Sales 1.5 Times ROA 3% ROE 5% Calculate…

A: Since there are multiple questions posted we will answer the first question for you as per the…

Q: A firm has total interest charges of $10,000 per year, sates of $1 million, a tax rate of 40…

A: Times interest earned ratio or interest coverage ratio shows ability of the company in paying it's…

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.…

Q: Use the following scenario to solve A-C. H2X Incorporated has accounts payable of $400,000 (a…

A: WACC means weighted average cost of all the sources through which funds are raised. WACC is equal to…

Q: 4. Atlas Co sales last year were $4,350, its operating costs were $3,625, and its interest charges…

A: earnings before interest and taxes= (Sales - operating cost)

Q: PT XYZ is a garment company that produces batik and other traditional clothing. The company's…

A: The unlevered firm value is the value of the firm considering that it borrows no debt and is…

Q: ADM Pty Ltd has Total Assets of R850 000. Debt ratio for the firm is 80% of which 70% is long term…

A: Total assets = R 850000 Debt ratio = 80% Long term debt is 70% of total debt. Asset turnover = 6 Net…

Q: Orono Corp.'s sales last year were $465,000, its operating costs were $362,500, and its interest…

Q: A firm has an ROE of 4%, a debt/equity ratio of 0.4, a tax rate of 35%, and pays an interest rate of…

Q: The Cookie Shoppe has sales of $637,500. The profit margin is 6.8 percent and the firm has a 50…

A: Retained earnings are the portion of a company's net income that is not paid out as dividends, but…

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: 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: ADM Pty Ltd has Total Assets of R850 000. Debt ratio for the firm is 80% of which 70% is long term…

Q: Company Y has a target debt ratio of 55%. Currently its debt ratio is 60% and it expects to revert…

A: The cost of debt (Kd) can be calculated by dividing the interest payments by the total liabilities.…

Q: ↑ Chutes & Co. has interest expense of $1.92 million and an operating margin of 10.9% on total sales…

A: The interest coverage ratio offers important clues about a company's financial health and debt…

Q: A company has 35% of its balance sheet as debt with a total amount of assets of EUR 17,000,000.If…

A: Weight of debt = 35% Weight of equity = 100% - 35% = 65%

Q: PT XYZ is a garment company that produces batik and other traditional clothing. The company's…

A: Weighted average cost of capital shows a company average cost of capital from all the sources that…

Q: The First National Bank of Trinidad reports a net interest margin of 5.83 percent. It has total…

A: Bank refers to institution that is primarily involved in accepting deposits from public and…

Q: Thomson Trucking has $24 billion in assets, and its tax rate is 25%. Its basic earning power (BEP)…

A: TIE ratio is the ratio of Earning before Interest and Tax divided by the Interest Expense. TIE Ratio…

Q: Ans.

A: This can be solved using two different ways. Way 1Returns on assets (ROA) in percentage is given by…

Q: DTO, Inc., has sales of ₱15 000 000, total assets of ₱12.6 million, and total debt of ₱ 5.6 million.…

A: Sales = 15000000 Total assets = 1260000 Total debt = 560000 Equity = Assets - debts = 1260000 -…

Q: ?

A: Given:Debt Ratio = 15% = 0.15ROE = 13% = 0.13To find ROA given debt ratio and ROE we will use the…

Q: Operating profit margin is 8.65%. Sales to assets ratio is 3.20. Assets are 630,000. Equity is…

A: Net income is the amount of money that an entity earned after deducting all the expenses from the…

Q: calculate the Economic Value Added for company XYZ Ltd:

A: Economic value added is the equivalent of calculating a company's profit margin against its cost of…

Q: NUBD had 5 degrees of operating leverage when its profit before taxes was P200,000. If the company's…

A: Given, Degree of operating leverage = 5 Increase in sales = 15%

Q: Young Enterprises has $2 million in assets, $400,000 of EBIT, and has a 40% tax rate. The firm also…

A: Return on equity (ROE):Return on equity (ROE) is a financial metric that measures a company’s…

Question

The Digital Warehouse has an outstanding debt of R580 000 with an interest rate of 9, 15%. The company's sales
amount to R4 290 000, the tax rate is 40%, and the net profit margin is 3,5%. What is the company's times interest
earned ratio? 1. 1, 13 times 2. 4,70 times 3. 5, 72 times 4. 7,93 times

AI-Generated Solution

AI-generated content may present inaccurate or offensive content that does not represent bartleby’s views.

Unlock instant AI solutions

Tap the button
to generate a solution

Click the button to generate
a solution

SEE SOLUTION

Similar questions

PT XYZ is a garment company that produces batik and other traditional clothing. The company's financial data is as follows.Earnings before interest and taxes or EBIT = Rp150.000.000 Corporate tax rate or TC = 25%Amount of debt or D = Rp600.000.000 Unlevered cost of capital or RU = 20% The cost of debt or RD = 8%Based on these financial data, determine:a. The value of company equityb. The value of company cost of equity
A company has debt, equity share and overdraft financing. The overdraft is used to finance the day-to-day activities of the company when necessary. The after-tax cost of debt is 12%, the cost of equity is 20% and the after-tax cost of the overdraft is 18%. The market value of debt is R1 000 000, the market value of equity is R2 000 000 and the market value of the overdraft is R500 000. Calculate the company’s weighted average cost of capital (rounded to two decimal places). a. 18.33% b. 17.33% c. 18.43% d. 19.33% e. 17.43%
40. JoelEmbi, Inc. has an ROA (return on assets) of 15.2 percent, total assets of $4,500,000 and a net profit margin of 7.6 percent. What are JoelEmbi, Inc.'s annual sales? Enter your answer a whole number (i.e., rounded to zero decimal places. 41. JimmyButle, LLC. has a debt-to-total assets ratio of 39.6%. What is the company's debt-to-equity ratio? Enter your answer as a ratio (that is, do not convert to a percent), rounded to 2 decimal places. 42. JohCol, Inc has a debt ratio of 27.0% and ROE = 20.2%. What is JohCol, Inc.'s ROA? Enter your answer as a percent rounded to 1 decimal place. Enter 43. PauGeo, Inc. has an ROA of 18.2% and a debt/equity ratio of 0.83. The firm's ROE is answer as a percent rounded to 1 decimal place. 44. Assume that TraeYoung, Inc. has: Debt ratio 60% ● Net profit margin = 15.2% ● Return on assets (ROA) = 52% Find Trae Young's Total Asset Turnover ratio. Enter answer as a ratio (that is, do not convert to a percent), rounded to 2 decimal places.
BN had 5 degrees of operating leverage when its profit before taxes was P200,000. If the company’s sales increased by 15%, what is the company’s profit before taxes?
ABC Company has sales of $500,000, COGS of $250,000, operating expenses of $200,000, net income of $15,000 and an inventory turnover of 5. What is the times interest ratio if ABC pays $10,000 interest? 1 3 5 2. 4)
The Digital Warehouse has an outstanding debt of R580 000 with an interest rate of 9, 15%. The company's sales amount to R4 290 000, the tax rate is 40%, and the net profit margin is 3,5%. What is the company's times interest earned ratio? 1. 1, 13 times 2. 4,70 times 3. 5,72 times 4. 7,93 times
Thomson Trucking has $15 billion in assets, and its tax rate is 25%. Its basic earning power (BEP) ratio is 18%, and its return on assets (ROA) is 6.25%. What is its times-interest-earned (TIE) ratio? Round your answer to two decimal places. X
The Digital Warehouse has an outstanding debt of R580 000 with an interest rate of 9, 15%. The company's sales amount to R4 290 000, the tax rate is 40%, and the net profit margin is 3,5%. What is the company's times interest earned ratio? 1. 1, 13 times 2. 4 , 70 times 3. 5,72 times 4. 7, 93 times
Show solution
The Digital Warehouse has an outstanding debt of R580 000 with an interest rate of 9, 15%. The company's sales amount to R4 290 000, the tax rate is 40%, and the net profit margin is 3,5%. What is the company's times interest earned ratio? 1. 1, 13 times 2. 4,70 times 3. 5, 72 times 4. 7,93 times
NUBD had 5 degrees of operating leverage when its profit before taxes was P200,000. If the company’s sales increased by 15%, what is the company’s profit before taxes?
ADM Pty Ltd has Total Assets of R850 000. Debt ratio for the firm is 80% of which 70% is long term liabilities. The Asset turnover is 6, net profit margin is 12%, the interest rate is 8% and tax rate is 40% for the firm. Calculate the following for the firm: 1.Sales for the company 2. Net profit after tax 3. Taxes and Earnings before tax

Recommended textbooks for you

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS