What are tie ratio

Assignment Help Financial Accounting
Reference no: EM132475221

Question 1: The W.C. Pruett Corp. has $450,000 of interest-bearing debt outstanding, and it pays an annual interest rate of 10%. In addition, it has $700,000 of common stock on its balance sheet. It finances with only debt and common equity, so it has no preferred stock. Its annual sales are $1.62 million, its average tax rate is 25%, and its profit margin is 2%. What are its TIE ratio and its return on invested capital (ROIC)? Round your answers to two decimal places.

Question 2: A ?rm has a pro?t margin of 2% and an equity multiplier of 1.9. Its sales are $400 million. and it has total assets of $240 million. What is its ROE? Do not round intermediate calculations. Round your answer to two decimal places. %

Reference no: EM132475221

Questions Cloud

Relationship between social class and cultural capital : What is the relationship between social class and cultural capital? In what ways does lifestyle and consumption constitute an important dimension of class
Compare the case management code of ethics : Compare the Case Management Code of Ethics to the Social Work Code of Ethics. Describe a possible ethical dilemma a case manager can face.
Determine accrual of interest and the premium amortization : Carla Vista Co. issued $474,000, 6%, 30-year bonds on January 1, 2022, at 106. Interest is payable annually on January 1. Carla Vista uses straight-line
Complete the balance sheet and sales : Complete the balance sheet and sales information using the Total assets turnover,Days sales outstanding,Inventory turnover ratio financial data
What are tie ratio : A ?rm has a pro?t margin of 2% and an equity multiplier of 1.9. Its sales are $400 million. and it has total assets of $240 million. What is its ROE?
What experiences in early learning years can a teacher : What experiences in early learning years can a teacher have to support diverse cultures in the classroom?
Success of a volunteer plan in the classroom : What potential obstacles might hinder the success of a volunteer plan in the classroom?
Calculate basic earning power : Calculate its basic earning power (BEP), its return on equity (ROE). and its return on invested capital (ROIC). Do not round intermediate calculations.
ITC596 IT Risk Management Assignment : ITC596 IT Risk Management Assignment Help and Solution - Charles Sturt University, Australia. Technical Risk Analysis - Summary of protection mechanisms

Reviews

Write a Review

Financial Accounting Questions & Answers

  Investor of construction company with projects

If you were an investor of a construction company with projects that take more than a year to complete, what is your income statement preparation preference and why? If you choose the accrual basis, what can shareholders do to ensure the appropriate ..

  Prepare a journal entry to record the purchase of material

Prepare a journal entry to record the purchase of material.- . Prepare a journal entry to record material used in production.

  What depreciation would broadway record for the year

Broadway changed to sum-of-years'-digits depreciation for this equipment. What depreciation would Broadway record for the year 2011 on this equipment?

  Determine the appropriate discount factor

The present value of the annual cost savings of $132,000 is closest to: (Round discount factor(s) to 3 decimal places and final answer to the nearest dollar amount.)

  Good reason to establish an esop

Which of the following is NOT normally regarded as being a good reason to establish an ESOP?

  What amount will the evanston company report

The Evanston Company acquired a 25% interest in Straw Enterprises for $8,000,000 and appropriately applied the equity method. During the first year, Straw reported net income of $1,060,000 and paid cash dividends totaling $100,000. What amount will T..

  Interest is paid semiannually

The fiscal year ends December 31 for Lake Hamilton Development. To provide funding for its Moonlight Bay project, LHD issued 7% bonds with a face amount of $630,000 on November 1, 2013. The bonds sold for $567,653, a price to yield the market rate of..

  Relative ownership interests

The partnership earns $100,000 ordinary income, and the partners agree to divide this amount based on their relative ownership interests

  What is the annual operating cash flow

A company is considering investing in a piece of machinery which will cost $550,000. It will provide an additional $160,000 in sales each year and its annual operating expenses are expected to be $52,000. The machine will be depreciated on a straight..

  Compute the account receivable turnover for year one and two

Compute the accounts receivable turnover for Year 2 and Year 1. Round to one decimal place. Compute the day's sales in receivables for Year 2 and Year 1. Use 365 days and round to one decimal place.

  What price would the team change to non-students

A minor league baseball team called the Billing Mustangs attracts both students and non-students as fans during the season, which runs from mid-April through August. How many tickets would the Mustangs sell to students, to maximize profit? What price..

  What amount of revenue should amar recognize

Amar sold the remaining 100,000 pounds during 2011 at the market price of $.72. What amount of revenue should Amar recognize in 2010?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd