What is peterson ebitda coverage ratio

Assignment Help Finance Basics
Reference no: EM13273880

Peterson Packaging Corp. has a basic earning power of 9% on $9 billion of total assets, and its times interest earned ratio is 3.0. Peterson's depreciation and amortization expense totals $1 billion. It has $0.6 billion in lease payments and $0.3 billion must go towards principal payments on outstanding loans and long-term debt. What is Peterson's EBITDA coverage ratio?

a.2.06
b.1.52
c.2.25
d.1.10
e.2.77

 

Reference no: EM13273880

Questions Cloud

What portion of total payments made during the fourth year : You recently obtained a $135,000, 30-year mortgage with a nominal interest rate of 7.25%. Assume that payments are made a the end of each month. what portion of the total payments made during the fourth year will go towards the repayment of princi..
Find the frequencies of first two overtones for this shower : Problem 12.30: Singing in the shower. We all sound like great singers in the shower, due to standing waves, What are the wavelengths of the first two overtones for this shower
What is the beta of the company for which she works : The investor calculates that the required return on her portfolio is 15%. what is the beta of the company for which she works?
What effective annual rate does the bank pay : If a bank pays a 6% nominal rate, with monthly compounding, on deposits, what effective annual rate does the bank pay?
What is peterson ebitda coverage ratio : It has $0.6 billion in lease payments and $0.3 billion must go towards principal payments on outstanding loans and long-term debt. What is Peterson's EBITDA coverage ratio?
What is the final velocity of the other ball : a ball of mass 1.00kg moves due east at 3.00 m/s. a ball of mass 2.00 kg moves due south at 2.00 m/s. they collide at the origin. what is the final velocity of the other ball
Characteristic of effective operational plans : Create a list of the features that are characteristic of effective operational plans and decide how managers measure successful implementation of objectives.
What is the required rate of return on krogh stock : The real risk-free rate is 2.50%, investors expect a 3.50% future inflation rate, the market risk premium is 5.50%, and Krogh Enterprises has a beta of 1.40. What is the required rate of return on Krogh's stock? (Hint: first find the market risk p..
Compute the number of grams of anhydrous sodium oxalate : Calculate the number of grams of anhydrous sodium oxalate needed to prepare 250 mL of .04500 M sodium oxalate solution.

Reviews

Write a Review

Finance Basics Questions & Answers

  Detailed description of capital structure decisions

If the selling price per deck of cards will be the same under each method, at what level of output will the two methods produce the same net operating income (EBIT)?

  What is the effective annual interest rate

Maltz Landscaping has an average collection period of 33 days for its accounts receivable. Currently, Maltz factors all of its receivables at a 5 percent discount. What is the effective annual interest rate on the financing from the factor?

  Why contingency planning is an important part of managing

why contingency planning is an important part of managing budgets and financial plans?

  Compute the average collection period

Sanders' Prime Time Company has annual credit sales of $2,592,000 and accounts receivable of $604,800. Compute the average collection period. (Use 360 days in a year.)

  What is the npv of the lease

The magic box would cost $3,600 to buy and would be straight-line depreciated to zero salvage value over three years. The firm can borrow at 6%, and the marginal corporate tax rate is 30%. What is the NPV of the lease?

  What would best characterize ms. hernandez investment goal

Tracey Hernandez is 26 and has saved enough money for an emergency fund, along with an additional $4,500 for an investment program. She is single with no dependents and has a desire to retire at 65. What would best characterize Ms. Hernandez's inv..

  Determine implication for the equity market

Why does it make sense that the right to residual income and control go together? If theey are separated, how does this affect the value of a claim to residual income?

  Journalize the transactions

Suppose you are interviewing for a part-time accounting job at Spilker & Associates, and the interviewer gives you the following list of corporation transactions in September 2006.

  What is the yield that trevor would earn by selling the bond

what is the yield that Trevor would earn by selling the bonds today? (Round intermediate calculations to 4 decimal places, e.g. 1.2514 and final answer to 2 decimal places, e.g. 15.25%.)

  What is the bonds price if comparable debt yields 12%

what are the current yields and yield to maturity in d.? what two generalizations may be drawn from the above price changes?

  Information about calculating cost of debt

In an effort to raise money, a company sold a bond that now has 20 years of maturity-what component of debt should be used in the WACC calculations?

  Calculate present value of the growth opportunity

Winter Corporation is expected to pay a dividend or $4.00 per share out of earnings of $7.50 per share. If the required rate of return on the stock is 15 percent and dividends are growing at a current rate of 10% per year.

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