What is the? firm times interest earned ratio

Assignment Help Financial Management
Reference no: EM131989896

Last year the Rondoelea Products Company had $138 million in annual sales and a net profit margin of 10.3 percent. In addition, Rondoelea's average tax rate was 30 percent. If Rondoelea had $36 million of debt outstanding with an average interest rate of 9.2 percent, what is thefirm's times interest earned ratio?

Reference no: EM131989896

Questions Cloud

What is intrinsic value of equity-intrinsic value of equity : what is the intrinsic value of equity? How many shares will be repurchased? what is the intrinsic value of equity?
Compute the new price of bond : Tom Cruise Lines Inc. issued bonds five years ago at $1,000 per bond. The bonds have 25 years remaining until maturity. Compute the new price of the bond.
What will the cash flows for this project be : The firm’s marginal tax rate is 39 percent. What will the cash flows for this project be?
Enhance the popularity of its aerobics dancing : Debby’s Dance Studios is considering the purchase of new sound equipment that will enhance the popularity of its aerobics dancing.
What is the? firm times interest earned ratio : If Rondoelea had $36 million of debt outstanding with an average interest rate of 9.2 percent, what is the firm's times interest earned ratio?
Retirement account is expected to earn annual interest : How much do you need to save each of the 15 years if your retirement account is expected to earn 10% annual interest?
What is the worst loss that the position can incur : What is the worst loss that the position can incur? What is the best outcome and for what range of stock prices does it occur?
Compare with the value of the stock at expiration : what is the portfolio of options worth? How do these profits and losses compare with the value of the stock at expiration?
Consider two european call options : Consider two European call options, Call 1 and Call 2. Both have the same time to expiration and are written on the same underlying stock.

Reviews

Write a Review

Financial Management Questions & Answers

  Company capital structure weights on market value basis

What are the company's capital structure weights on a book value basis? What are the company’s capital structure weights on a market value basis?

  Front-line professionals on new service-delivery system

A large governmental social agency, employing thousands of social workers and other specialized workers, trained all of its front-line professionals on a new service-delivery system. Simultaneously, it taught managers how to actively support and enco..

  Limited-pay whole life insurance policy

If a limited-pay whole life insurance policy is determined to be a “MEC” (Modified Endowment Contract): Select one: a. cash value increases cease immediately b. distributions, including policy loans, will likely be includable in income c. death benef..

  Effective annual rate

Tom purchased 100 shares of Dalia Co. stock at a price of $120.32 four months ago. He sold all stocks today for $125.08. During the year the stock paid dividends of $6.48 per share. What is Tom’s effective annual rate?

  Saved to supplement his pension and social security

Calculate the future value of $5,000 earning 10% after one year assuming annual compounding. Richard Gorman is 65 years old and about to retire. He has $500,000 saved to supplement his pension and Social Security, and would like to withdraw it in equ..

  What is the standard deviation of your portfolio

A pension fund manager is considering three mutual funds. What is the standard deviation of your portfolio?

  The current spot exchange rate

The current spot exchange rate is 3.75 BRL per US dollar, the one-year forward rate is 3.95, and the one-year US interest rate is 2%.

  Market price of bond is called the bonds current yield

The coupon interest payment divided by the market price of a bond is called the bonds’ current yield.

  Instruments pays periodic interest during the life of loan

Which of these debt instruments pays periodic interest during the life of the loan, but none of the principal is repaid until maturity?

  What is the maximum dollar purchase you can make

You have $80,000 and decide to invest on margin. If the initial margin requirement is 60 percent, what is the maximum dollar purchase you can make?

  What alternative investment has lowest possible volatility

what alternative investment has the lowest possible volatility while having the same expected return as Wal-Mart?

  Company will change to constant dividend policy

BDU Company has set up a new product line in January 2015. The dividend is expected to grow at 8% per year for the next 15 years. Then at 3% thereafter. The required return is 12% and the dividend in the coming year is $3.00. What is the stock price?..

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