What percentage decline in earningsbefore interest and taxes

Assignment Help Taxation
Reference no: EM13318394

In 2010, Natural Selection, a nationwide computer dating service, had $500 million of assets and $200 million of liabilities. Earnings before interest and taxes were $120 million, interest expense was $28 million, the tax rate was 40 percent, principal repayment requirements were $24 million, and annual dividends were 30 cents per share on 20 million shares outstanding. Calculate: Natural Selection's liabilities-to-equity ratio Times interest earned ratio Times burden covered What percentage decline in earnings before interest and taxes could Natural Selection have sustained before failing to cover: Interest payment requirements? Principal and interest requirements? Principal, interest, and common dividend payments?

Reference no: EM13318394

Questions Cloud

To calculate the price of the bond : To calculate the price of the bond you will need PV factors for 5.5% for 40 semi-annual periods. You can easily figure them out either using the formulas underlying the PV factors in the ch. 6 tables or doing the PV calc in excel. But to make..
What is meant by designing products for production : What is meant by designing products for production or manufacturability? What is the most important factor in taking this approach to product design?
Explain nitrogen gas is released from the decomposition : Assuming that one mole of NaN3 produces one mol of N2, what volume, in liters, of nitrogen gas is released from the decomposition of 1.88 g sodium azide? The pressure is 755 torr and the temperature is 24 degrees C.
What are the lowest three standing wave frequencies : A string 2.0 m long is held fixed at both ends. If a sharp blow is applied to the string at its center, What are the lowest three standing wave frequencies for this string
What percentage decline in earningsbefore interest and taxes : Natural Selection's liabilities-to-equity ratio Times interest earned ratio Times burden covered What percentage decline in earnings before interest and taxes could Natural Selection have sustained before failing to cover: Interest payment req..
What is the focal length of the convex mirror : An object is 12.0 cm in front of a convex mirror. When the convex mirror is replaced with a flat mirror, What is the focal length of the convex mirror
Explain reaction of a single enantiomer of x produces z : Reaction of a single enantiomer of W produces a single enantiomer of Y as the only substitution product. X likewise reacts readily in water though at a slower rate than W; a chiral substitution product Z, C8H17OH, is again formed. Unlike W, howeve..
Determine what is the tension in the string from t : A 0.4 kg mass m is rotating on a horizontal, frictionless surface, its motion constrained by a massless, inextensible string. The distance from the string's attachment point, O, to the mass is a constant.
Determine the focal length of the mirror : The image of an object seen in a mirror is twice its actual size. The orientation of the image is the same as that of the object. what is the focal length of the mirror

Reviews

Write a Review

Taxation Questions & Answers

  What is the corporations taxable income

A corporation has income of $62,000 from operations and a long term capital loss of $5,000 and long term capital gain of $4,000. What is the corporation's taxable income?

  Calculate sem pty ltds taxable income

Indicate with explanations, sections of the Acts and relevant caselaw how the Revenue and Expense items in the company's accounts are treated for tax purposes and calculate SEM Pty Ltd's taxable income for 2011/12.

  Compare the tax advantages of debt versus equity

Compare the tax advantages of debt versus equity capital formation of the corporation for the client and debt or equity for capital formation of thenew corporation, based on your research

  Explain how the business should account

Explain how the business should account for the $5,000 expenditure under the cash basis and the accrual basis.

  Evaluate the tax rules for a parsonage

Evaluate the tax rules for a parsonage usually? Under each of the subsequent conditions, what are the tax implications to the Imam and mosque?

  Identify the tax issues

Identify the tax issues that are raised and the relevant sections of the legislation. Identify any cases and other sources of law or information that apply.

  Taxable income

Determine taxable income before considering expense.

  Review the expenses submitted by the client

A staff tax accountant has come to you for advice. She has begun a tax return and does not know what to do with the expenses that the client has submitted as itemized deductions

  You are a cpa and a tax senior

You are a CPA and a tax senior at Roll Accounting Inc. (RAI), an accounting professional corporation in Canada. It is now March 31, 2014 and you have just finished meeting with Mike Dee, a partner at RAI. Mike has some tax issues that he wants you to..

  Calculate their taxable income and tax liability.

Calculate their taxable income and tax liability.

  Net effect of arrangement-reduction in income tax liability

The net effect of this arrangement is a reduction in their income tax liability - Will Carol and Jared''s plan work? Explain

  Tax implications of program

Describe the 401 K limits and special treatment for highly-compensated employees. Document how, as a tax analyst, you see this program. Document what, if any, will be the tax implications of this program.

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