Amount of interest expense reported by benson corporation

Assignment Help Financial Management
Reference no: EM13947069

Benson Corporation announced that its net income for the year ended June 30, 2015 is $1,400,000. The company also reported EBITDA of $5,000,000, and depreciation and amortization expense of $1,250,000. If the company's income tax rate is 50 percent, what is the amount of interest expense reported by Benson Corporation? Schedule

Reference no: EM13947069

Questions Cloud

What is the firms net income : Alpha Corporation has a return on equity (ROE) of 18.70 percent, an equity multiplier of 2.50, sales of $2,750,000, and a total assets turnover of 2.75. What is the firm's net income?
Cost of materials and labor needed to generate these revenue : Rocky Mountain Lumber Company is considering purchasing a new wood saw that costs $50,000. The saw will generate revenues of $100,000 per year for four years.  Rocky Mountain’s tax rate is 34 percent, and its opportunity cost of capital is 10 percent..
Business owners are protected by limited liability : Which of the following business owners are protected by limited liability?
Pay off her loan ahead of schedule : Skylar Masterson borrowed $250,000 to buy her first home at an annual interest rate of 12 percent with monthly payments for 30 years. Ms. Masterson would like to pay off her loan ahead of schedule. What is the remaining unpaid balance when there are ..
Amount of interest expense reported by benson corporation : Benson Corporation announced that its net income for the year ended June 30, 2015 is $1,400,000. The company also reported EBITDA of $5,000,000, and depreciation and amortization expense of $1,250,000. If the company's income tax rate is 50 percent, ..
Productivity improvements save it in direct labor costs : Refer to the HR Reports in the Inquirer. Through past investments in recruiting and training Chester has obtained a productivity index of 109.4%. This means that Chester's labor costs would be increased by 9.4% if it did not have these productivity i..
What is the interest rate on this loan : You would like to buy a used car. You borrow $8,000 from your uncle and agree to repay the loan at the end of three years in a one-time payment of $9,250. What is the interest rate on this loan?
An investment that pays the same amount at the end : An investment that pays the same amount at the end of each year for a fixed amount of time is called __________. A. an annuity due B. a perpetuity C. an excess cash flow D. an ordinary annuity
Calculate the company cost of capital : The market value of Charter Cruise Company's equity is $15 million and the market value of its debt is $5 million. If the required rate of return on the equity is 20% and that on its debt is 8%, calculate the company's cost of capital. (Assume no tax..

Reviews

Write a Review

 

Financial Management Questions & Answers

  Next dividend payment-what is the required return

The next dividend payment by ECY, Inc., will be $1.88 per share. The dividends are anticipated to maintain a growth rate of 4 percent, forever. ECY stock currently sells for $37 per share. What is the required return?

  Prepare a horizontal analysis

Prepare a horizontal analysis for 20X1 and 20X2. Briefly comment on the results of your work

  What is cost of retained earnings

The common stock of Omega Corporation is currently selling for $50 per share. It is expected that Omega will pay a dividend equal to $2 per share this year. In addition, analysts have indicated that the company has been growing at a constant rate of ..

  Difference between lean maintenance and lean production

How does lean maintenance differ from the traditional approach under which a maintenance department has the responsibility for all maintenance functions? Which level on the maintenance performance hierarchy would you expect to find a lean maintenance..

  What is your estimate of stock bs price

The current dividend is $1.50, its current price is $15.90. You are an analyst and believe that the required return on Stock B is the same as that on Stock A. If Stock B pays a constant dividend of $ 2, what is your estimate of Stock B's price?

  Treasury bonds paying

Treasury bonds paying an 8% coupon rate with semiannual payments currently sell at par value. What coupon rate would they have to pay in order to sell at par if they paid their coupons annually?

  What is your estimate of the stocks current price

A company currently pays a dividend of $3.75 per share (D0 = $3.75). It is estimated that the company's dividend will grow at a rate of 21% per year for the next 2 years, then at a constant rate of 6% thereafter. The company's stock has a beta of 1.4..

  What is the equipment''s after-tax net salvage value

Allen Air Lines must liquidate some equipment that is being replaced. The equipment originally cost $12 million, of which 75% has been depreciated. The used equipment can be sold today for $4 million, and its tax rate is 40%. What is the equipment's ..

  Considering new project-net present value of the project

Lucky Inc is considering a new project. The project will generate revenues of $16 million and operating costs of $9,000,000 annually for the next 5 years. Interest expense is $1,000,000 per year. What is the net present value of the project?

  After tax-cost of debt

A bond that has a $1000 par value (face value)and a contract or coupon interest rate of 11.2 percent. Interest payments are $56.00 and are paid semiannually. The bonds have a current market value of $1128 and will mature in 10 years. The firm margina..

  Calculate the net present value and profitability index

Fijisawa, Inc. is considering a major expansion of its product line and has estimated the following cash flows associated with such an expansion. Calculate the net present value. Calculate the profitability index. Calculate the internal rate of retur..

  Optimal capital structure

In real-life companies do not change their capital structure as often as you might think after reading all the capital structure theories. Explain one reason why a firm might not move towards its optimal capital structure even if it knows what that o..

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