Interest coverage ratio, If the company has an interest

Interest coverage ratio

Assignment Help Financial Management

Reference no: EM131549415

Suppose a company has earnings before taxes of $20 billion and its income tax is 35% of its earnings before taxes. If the company has an interest expense of $2 billion, its interest coverage ratio is? Please show work on how you got your answer.

Reference no: EM131549415

Questions Cloud

You make the last of your thirty investments : how much will you have on the day that you make the last of your thirty investments?

Current price of bonds if the present yield to maturity : Compute the current price of the bonds if the present yield to maturity is.

Compute cost of retained earnings : Compute the cost of retained earnings (Ke). If a $2 flotation cost is involved, compute the cost of new common stock (Kn).

Your first withdrawal is at the end of your first retirement : How much will you have to save each year over next 40 years to meet your goal? assume that your first withdrawal is at the end of your first retirement year.

Interest coverage ratio : If the company has an interest expense of $2 billion, its interest coverage ratio is?

New machine and piece of equipment : Compute the weighted average cost of capital. Which project(s) should be accepted? New machine-Piece of equipment.

Telecom systems can issue debt yielding : Telecom Systems can issue debt yielding 6 percent. The company is in a 35 percent bracket. What is its aftertax cost of debt?

Compute the price of ecology labs common stock : Compute the price of Ecology Labs' common stock. Assume the growth rate (g) goes up to 9 percent. what will be the new price?

What are two risks to international investing : What are two risks to international investing? Can the net present value method of evaluating projects identify the one that will maximize wealth? Explain.

User Account

All Pages