User Account

All Pages

Calculate the Current Ratio and the EBIT Interest Coverage

Assignment Help Accounting Basics
Reference no: EM133056738

Question - Mary has calculated the cost of equity for a company to be 7.66% using a government bond rate of 2.67% and market return rate of 9.07%. Mary has calculated the cost of equity for a company to be 7.66% using a government bond rate of 2.67% and market return rate of 9.07%. Calculate the Current Ratio and the EBIT Interest Coverage using the following numbers from the company's annual report for year ending 30June 2017, and interpret what these two ratios imply in terms of the company's solvency and efficiency: EBIT $421.7m; NPAT (net profit after tax) $264.4m; Total Current Assets $427.6m; Total Current Liabilities $589.3m.

Reference no: EM133056738

Questions Cloud

Determining the firm market value capital structure : Titan Mining Corporation has 9.5 million shares of common stock outstanding and 390,000 4.9 percent semiannual bonds outstanding, par value $1,000 each. The com
What internal audit opinion is applicable for this scenario : The Sales Dept. of KGG Company was audited by the Internal Audit Dept. for the year 2020. What internal audit opinion is applicable for this scenario
Calculate the respective implied forward rates : Consider a semi-annual coupon bond. Its face value is $1,000, it bears a 6 percent coupon rate per year, and will mature in 2 years.
Term business process mean : What does the term business process mean? What is one of the criticisms of ERP systems? Why did BPR(Business Process Re-engineering) get a bad name?
Calculate the Current Ratio and the EBIT Interest Coverage : Calculate the Current Ratio and the EBIT Interest Coverage using the following numbers from the company's annual report for year ending 30June 2017
Find required return and expected return for stock : An analyst gathered the following information for a stock and market parameters: stock beta = 1.2 51 ; expected return on the Market = 11.59%; expected return o
Applying data-mining approach to higher education : Austin Peay State, a university near Nashville, Tennessee, is applying a data-mining approach to higher education.
What component of ERP helps the Managerial level : What component of ERP helps the Managerial level? Do these components resolve the problems faced by organisations prior to introduction of ERP
Forecasting and projections important : Why are things like forecasting and projections important?

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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