What is its tie ratio

Assignment Help Finance Basics
Reference no: EM131105572

The H.R. Pickett Corp. has $500,000 of debt outstanding, and it pays an annual interest rate of 10%. Its annual sales are $2 million, its average tax rate is 30%, and its net profit margin is 5%. What is its TIE ratio?

Reference no: EM131105572

Questions Cloud

What will be the firm''s new quick ratio : if the funds generated are used to reduce common equity (stock can be repurchased at book value), and if no other changes occur, by how much will the ROE change? What will be the firm's new quick ratio?
How much must hollis invest today : Hollis Stacy wants to create a fund today that will enable her to withdraw $20,000 per year for 8 years, with the first withdrawal to take place 5 years from today. If the fund earns 8% interest, how much must Hollis invest today?
What amount will be in the fund immediately : What amount will be in the fund immediately after the last deposit?
What will be the company''s return on equity : Management projects an EBIT of $1,000,000 on sales of $10,000,000, and it expects to have a total assets turnover ratio of 2.0. Under these conditions, the tax rate will be 34%. If the changes are made, what will be the company's return on equity?
What is its tie ratio : The H.R. Pickett Corp. has $500,000 of debt outstanding, and it pays an annual interest rate of 10%. Its annual sales are $2 million, its average tax rate is 30%, and its net profit margin is 5%. What is its TIE ratio?
What equal amounts can corinne withdraw : What equal amounts can Corinne withdraw at the end of each of the next 20 years?
What interest rate is mark paying : Mark Twain's VISA balance is $1,124.40. He may pay it off in 18 equal end-of-month payments of $75 each. What interest rate is Mark paying?
How much must he invest today if the first withdrawal : How much must he invest today if the first withdrawal is at year-end? How much must he invest today if the first withdrawal takes place immediately?
Luther vandross is investing : Luther Vandross is investing $12,961 at the end of each year in a fund that earns 10% interest. In how many years will the fund be at $100,000?

Reviews

Write a Review

Finance Basics Questions & Answers

  Contrast the two selected organizations

Using  AT&T organization  and a second organization in the same industry as the subject matter, research the elements of business, compare and contrast the two selected organizations, and prepare an APA formatted paper that:

  Calculating expected return

Suppose you have 10,000 to invest ion a stock portifolio. Your choices are stock x with an expected return of 14% and stock y with an expected return of 9%.

  Calculate the expected and the actual capital gains yield

Calculate the Expected and the Actual Capital Gains Yield (CGY), the Current (Coupon) Yield (CY), and the Total Yield (TY) for each security during 2013 and 2014. Also find the present Yield-to-Maturity for each security.

  What is the firms debt-equity ratio

Central Systems, Inc. has a weighted average cost of capital of 8 percent. The firm has an after-tax cost of debt of 5 percent and a cost of equity of 10 percent. What is the firm's debt-equity ratio?

  Gem systems has recently issued preferred stock the stock

gem systems has recently issued preferred stock. the stock has a 12 annual dividend based on a par value of 100 per

  How can cash discounts improve collections

How can cash discounts improve collections? What are ramifications if an organization has too much cash on hand?

  What is anton return on equity

Anton's Coffee Shop has a return on assets of 12%. Anton's assets = $100 while Anton's owner's equity = $40 and its debt equals $60. What is Anton's return on equity?

  Computation of stock beta

My company's stock is now selling for $40 a share. The stock is expected to pay $2 dividend at the end of the year. The stock's dividend is expected to increase at a constant rate of seven percent a year forever.

  Better long term financial situation

After reviewing all cost cutting measures I anticipate I could cut back and save approximately $15000 a year if I put those measures into practice.

  What is the modified duration of the bond

A 5 year par value bond ($1,000) has an annual coupon rate of 8%. What is the modified duration of the bond? Use duration table (Note: discount rate is 8%)

  Discuss the 3 important characteristics of life insurance

Please define each of the followingand provide one scenario in which each plan or type of coverage would be appropriate.

  Describe the benefits and costs of delaying an investment

Using the information in Problem 2, rework the problem assuming you find out the size of the Everlasting Gobstopper market one year after you make the investment.

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