What is the value of the cash coverage ratio

Assignment Help Financial Management

Reference no: EM13868534

A firm has sales of $3,600, costs of $2,800, interest paid of $100, and depreciation of $400. The tax rate is 34%. What is the value of the cash coverage ratio?

Must use this cash coverage ratio formula: (EBIT + depreciation) / interest

Reference no: EM13868534

Questions Cloud

Interest rate is compounded quarterly-find the interest rate : On her 14th birthday, a girl inherits $14,000 which is to be used for her college education. The money will be deposited in a trust fund that will pay her R dollars on her 18th, 19th, 20th, and 21st birthday. A loan with a quarterly payment of $1440 ..

Define and describe internal communication : Address the following points and include comprehensive speaker notes that provide an explanation for each concept: Define and describe internal communication. Should an implemented EHR system improve operations? Why or why not

Perpetuity value : Given an interest rate of 4 percent per year, what is the value at date t = 5 of a perpetual stream of $2,400 payments that begins at date t = 10?

Percent of variation in returns is explained by market index : What percent of variation in returns is explained by the market index? What is the y-intercept of your company? What does it mean? Is it significanlty greater than zero? Does CAPM appear to explain the returns of your company very well?

What is the value of the cash coverage ratio : A firm has sales of $3,600, costs of $2,800, interest paid of $100, and depreciation of $400. The tax rate is 34%. What is the value of the cash coverage ratio?

Shares remaining after recapitalization : Dye Trucking raised $200 million in new debt and used this to buy back stock. After the recap, Dye's stock price is $6.25. If Dye had 60 million shares of stock before the recap, how many shares does it have after the recap?

Find those two effective interests : You have just put your house up for sale. The agent tells you that two offers have been made: (1) 400,000 now and 400,000 in 2 years; and, (2) 287,500 now, 237,500 in 1 year and 275,000 in 2 years. Your agent says that one offer seems “just as good” ..

Does this suggest an investment strategy : Calculating Future Values. You have just made your first $5,000 contribution to your individual retirement account. Assuming you earn a 10.1 percent rate of return and make no additional contributions, what will your account be worth when you retire ..

Create single graph showing the price of bonds : Consider 3 Treasury bonds which pay semi-annual coupons. Bond A has 5 years remaining to maturity and a coupon rate of 10%. Using Excel, create a single graph showing the price of Bonds A & B for varying YTMs. Let YTM range from 0.5% to 18% per year ..

User Account

All Pages