What is its times-interest-earned ratio

Assignment Help Financial Management
Reference no: EM13917548

Graser Trucking has $10 billion in assets, and its tax rate is 30%. Its basic earning power (BEP) ratio is 20%, and its return on assets (ROA) is 6%. What is its times-interest-earned (TIE) ratio? Round your answer to two decimal places

Reference no: EM13917548

Questions Cloud

Prepare cash budget and cash inflows : Unified Path gives a $93,000 grant to Care for the Homeless at the start of its fiscal year on January 1. To expand its activities, Care for the Homeless also convinces the city, state, and county governments to give it additional funds for the year...
After-tax percentage cost of capital : Britton Industries has operating income for the year of $3,500,000 and a 38% tax rate. Its total invested capital is $18,000,000 and its after-tax percentage cost of capital is 6%. What is the firm’s EVA?
What is the expected return of portfolio invested : Stock A has an expected return of i4% and a standard deviation of 35%. Stock B has an expected return of 20% and a standard deviation of 65%. The correlation coefficient between Stocks A and B is 0.2. What is the expected return of a portfolio invest..
Remodeling and expansion project : Home Place Hotels, INC. is entering into a 3-year remodeling and expansion project. The construction will have a limiting effect on earnings during that time, but when it is complete, it should allow the company to enjoy much improved growth in earni..
What is its times-interest-earned ratio : Graser Trucking has $10 billion in assets, and its tax rate is 30%. Its basic earning power (BEP) ratio is 20%, and its return on assets (ROA) is 6%. What is its times-interest-earned (TIE) ratio? Round your answer to two decimal places
Weight of each stock in the minimum variance portfolio : Consider two stocks, Stock D, with an expected return of 17 percent and a standard deviation of 32 percent, and Stock I, an international company, with an expected return of 10 percent and a standard deviation of 20 percent. The correlation between t..
Most recent financial statements : In its most recent financial statements, Newhouse Inc. reported $60 million of net income and $1,020 million of retained earnings. The previous retained earnings were $969 million. How much in dividends were paid to shareholders during the year? Assu..
Calculate the cost of common stock-after-tax cost of debt : Lang Enterprises is interested in measuring its overall cost of capital. Current investigation has gathered the following data. The firm is in the 40% tax bracket. The firm can raise debt by selling $1,000 par value, 8% coupon interest rate, 20 year ..
What will be the realized compound yield to maturity : A 2-year bond with par value $1,000 making annual coupon payments of $80 is priced at $980. What is the yield to maturity of the bond? What will be the realized compound yield to maturity if the one-year interest rate next year turns out to be   8%.

Reviews

Write a Review

Financial Management Questions & Answers

  Interest rates are still very low

We are now in 2015 and interest rates are still very low. There are plenty of analysts and industry professionals who argue this has not been the correct approach. Obviously, the Fed has disagreed. Do you agree or disagree with the Fed that keeping r..

  What was wallaces total long-term debt

At year-end 2013, Wallace Landscaping total assets were $1.8 million and its accounts payable were $370,000. Sales, which in 2013 were $2.1 million, are expected to increase by 20% in 2014. Total assets and accounts payable are proportional to sales,..

  What is the expected rate of return on your portfolio

Stock A has a beta of 1.50 and a standard deviation of return of 35%. Stock B has a beta of 3.25 and a standard deviation of return of 60%. Assume that you form a portfolio that is 40% invested in Stock A and 60% invested in Stock B. Using the inform..

  How many shares does it have after the recap

Dye Trucking raised $260 million in new debt and used this to buy back stock. After the recap, Dye's stock price is $7.5. If Dye had 80 million shares of stock before the recap, how many shares does it have after the recap?

  Financing a new project with new equity will reduce earnings

During recent years your company has made considerable use of debt ?nancing, to the extent that it is generally agreed that the percent debt in the ?rm's capital structure is too high.

  Why is an investor willing to pay more than exercise value

If the price of the underlying stock changes to $33 per share, will the market value of the option increase, decrease, or remain the same? Why

  End-of-year balance in retained earnings

Jamaica Tours, Inc., started the year with a balance of retained earnings of $1,780 million. The company reported net income for the year of $284 million and paid dividends of $17 million to the preferred stockholders and $59 million to common stockh..

  Stock investments should be accounted for using cost method

Which of the following stock investments should be accounted for using the cost method?

  What is the current price of bond m and bond n

Jallouk Corporation has two different bonds currently outstanding. Bond M has a face value of $50,000 and matures in 20 years. The bond makes no payments for the first six years, then pays $2,600 every six months over the subsequent eight years, and ..

  Ordinary annuity cash flow

What is the future value in 27 years of an ordinary annuity cash flow of $704 every quarter of a year at the end of the period, at an annual interest rate of 8.89 percent per year, compounded quarterly?

  Property ownership could he sell without consent of co-owner

Are all of the items listed below reasons why having a will is important? Which items will go through probate? Which property ownership could he sell without the consent of a co-owner?

  Calculate the cost pf common equity using gordon model

Last year black water inc paid dividends $2.58. Companys dividends are expected to grow at an annual rate of 2.88 percent, forever. The companys common stock is currently selling in the market for $98.95.The investment banker will charge floatation c..

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