Calculate the times interest earned ratio

Assignment Help Financial Management

Reference no: EM13877744

Calculate the times interest earned ratio for Tierre's Ts, Inc. using the following information. Sales = $200,000, cost of goods sold = $50,000, depreciation expense = $13,000, addition to retained earnings = $70,000, dividends per share = $0.50, tax rate = 30 percent, and number of shares of common stock outstanding = 1,000. Tierre's Ts has no preferred stock outstanding.

0.1814

0.4854

0.685

3.7756

Reference no: EM13877744

Questions Cloud

What is the value of a bond that has a par value : What is the value of a bond that has a par value of $1,000, a coupon rate of 8.26 (paid annually), and that matures in 30 years? Assume required rate of return on this bond is 8.65 percent

The two most basic components of any investment opportunity : The two most basic components of any investment opportunity are risk and return. Define each and explain how they are related in the investment world. Why does their relationship matter to you as an investor?

The corporate valuation model discounts free cash flows : The corporate valuation model discounts free cash flows by the required return on equity. The corporate valuation model can be used to find the value of a division. An important step in applying the corporate valuation model is forecasting the firm's..

Weighted average cost of capital for use capital budgeting : Which of the following is NOT a capital component when calculating the weighted average cost of capital (WACC) for use in capital budgeting?

Calculate the times interest earned ratio : Calculate the times interest earned ratio for Tierre's Ts, Inc. using the following information. Sales = $200,000, cost of goods sold = $50,000, depreciation expense = $13,000, addition to retained earnings = $70,000, dividends per share = $0.50, tax..

Transactions occurred in the primary market : Which one of the following transactions occurred in the primary market?

What would the investor be willing to pay for the loan : A borrower has secured a 30 year, $150,000 fully amortizing fixed rate loan at 7% with monthly payments. Fifteen years later, an investor wants to purchase the loan from the lender. If market interest rates are 5%, what would the investor be willing ..

Retained earnings break point for marginal cost of capital : Rolodex Inc. Balance Sheet (in millions) shows retained earnings of $110 and $20 Common Stock (20 million shares at par). Rolodex expects to generate $140 million in net income and pay $2 per share in dividends. What is Retained Earnings for the purp..

What is the worth of this deal to the player : In 2011, a running back signed a contract worth $58.8 million. The contract called for $10 million immediately and a salary of $3 million in 2011, $8.5 million in 2012, $10 million in 2013, $8.9 million in 2014 and 2015, and $9.5 million in 2016. If ..

User Account

All Pages