User Account

All Pages

What percentage decline in earnings before interest

Assignment Help Financial Accounting
Reference no: EM132893182

Question - In 2016, Natural Selection, a nationwide computer dating service, had $514 million of assets and $207 million of liabilities. Earnings before interest and taxes were $127 million, interest expense was $28.5 million, the tax rate was 40 percent, principal repayment requirements were $24.7 million, and annual dividends were 25 cents per share on 20 million shares outstanding.

a. Calculate the following for Natural Selection: (Round your answers to 2 decimal places.)

a. liabilities to equity ratio

b. times interest earned ratio

c. times burden covered

b. What percentage decline in earnings before interest and taxes could Natural Selection have sustained before failing to cover: (Round your answers to 1 decimal place.)

a. interest payment requirements

b. principle and interest requirements

c. principle, interests, and common dividends payments?

Reference no: EM132893182

Questions Cloud

Discuss the fairness in jury pool and jury selection : Discuss the fairness in jury pool and jury selection, and the impacts of juror exclusion by race. The defense attorney believes that the county court system.
Determine the effects of these events on Shelby share : Determine the effects of these events on Shelby's share of the entity's AAA, her stock basis, and GrizzlyCo's AEP
How should law enforcement interact with the public : Can the State prove that Juvey understood the waiver of his Miranda rights, and How should law enforcement interact with the public
What are Sheila and Jacob recognized gain or loss : Assuming that Sheila's adjusted basis for the land is $24,000, what are Sheila's and Jacob's recognized gain or loss on the sales
What percentage decline in earnings before interest : What percentage decline in earnings before interest and taxes could Natural Selection have sustained before failing to cover: interest payment requirements
Discuss how globalization has changed jobs : Discuss how globalization has changed jobs in an organization where you have worked. What are some HR responses to those changes?
Transform from being primarily administrative : Why is it important for HR management to transform from being primarily administrative and operational to a more strategic contributor?
Organizational weakness and threat to organization : How can one distinguish between an organizational weakness and a threat to the organization?
Discuss any safety concerns that may arise : Discuss whether the constitutional right to bear arms extends to the courtroom. Explain whether the integrity of the court is compromised.

Reviews

Write a Review

Financial Accounting Questions & Answers

  Record entries assuming that allen corporation influence

Recording Entries for Equity Investment, Record the entries in 2020 assuming that Allen Corporation had significant influence over Towne Corporation.

  An application program interface

An application program interface (API)

  Record the dialy transactions for the month of may

You are to open the books of F. Polk, a trader, via the journal to record the assets and liabilities, and are then to record the dialy transactions for the month of May. A trial balance is to be extracted as on 31 May 2017.

  Illustrate which is cheaper for the company to buy or lease

The company’s weighted average cost of capital is 12% and payments are made at the end of each month. Illustrate which is cheaper for the company: to buy or lease real estate? Show your computations.

  How much the net cash provided by operating activities

In the December 31, 2021 statement of cash flows of the company, how much would be the net cash provided (used) by - operating activities

  Weighted-average method in its process costing system

Diston Company uses the weighted-average method in its process costing system. The first processing department, the Welding Department, started the month with 23,000 units in its beginning work in process inventory that were 15% complete with respect..

  How do prepare the adjusting journal entry on december

At December 31, the unadjusted trial balance of H & R Tacks reports Software of $18,500. Prepare the adjusting journal entry on December 31.

  How much would abc receive as total dividends

X Corporation subsequently announced a 1:3 share split down and a cash dividend of $0.26 per share. How much would ABC receive as total dividends?

  What is the annual value of the pump

The pump will have a salvage value of $0 at the end of its lifetime. Assuming the interest rate is 4%. What is the annual value of the pump?

  Significant influence over operating and financial policies

Grant, Inc. (Grant) acquired 30% of South Co.'s (South) voting stock for $200,000 on January 1, 20X1. Grant's 30% interest in South gave Grant the ability to exercise significant influence over South's operating and financial policies. On that date, ..

  Find what is balance that would appear in venus company''

Find What is the balance that would appear in Venus Company's inventory account on February 1 assuming use of a periodic inventory system? Explain.

  Calculate the net assets of drugco at the acquisition date

Calculate the net assets of DrugCo at the acquisition date. Capitalized cost of medical research performed for the client based on the contract

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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