Earnings before interest and taxes is equal

Assignment Help Financial Management
Reference no: EM131025543

Bradbury Breathe Easy Corporation has annual sales of 3,750,000. Earnings before interest and taxes is equal to 21 percent of sales. For the period, the firm paid $117,900 in interest. What is the profit margin if the tax rate is 38 percent?

Reference no: EM131025543

Questions Cloud

Find the probability that the plant will use more : A manufacturing plant uses a specific bulk product. The amount of product used in one day can be modeled by an exponential distribution with β = 4 (measurements in tons). Find the probability that the plant will use more than 4 tons on a given day..
Convert the following nominal gdp numbers into real gdp : Convert the following nominal GDP numbers into real GDP using the CPI that is given. Plot both real and nominal GDP putting the years on the horizontal axis and GDP on the vertical axis. Comment upon why it is misleading to compare nominal GDP acro..
Cash and marketable securities worth-net working capital : Winston Electronics reported the following information at its annual meetings. The company had cash and marketable securities worth $1,236,290, accounts payables worth $4,159,780, inventory of $7,121,620, accounts receivables of $3,489,210, notes pay..
Nation state in which you would like to do business : Write a one to two page essay wherein you choose a nation state in which you would like to do business. In your essay describe the problems you might encounter in entering the foreign market and in running your business there.
Earnings before interest and taxes is equal : Bradbury Breathe Easy Corporation has annual sales of 3,750,000. Earnings before interest and taxes is equal to 21 percent of sales. For the period, the firm paid $117,900 in interest. What is the profit margin if the tax rate is 38 percent?
What has been the general impact of legislation : Regarding takeover defenses, what has been the general impact of legislation? What has been the impact of court decisions? According to Jensen’s studies (1988), what is the result of the broad application of the business judgment rule by the courts?
There might at times be an inverted treasury yield curve : Even if the pure expectations theory is correct, there might at times be an inverted Treasury yield curve. If the yield curve is inverted, short-term bonds have lower yields than long-term bonds. The most likely explanation for an inverted yield curv..
Principal payments on outstanding loans and long-term debt : Peterson Packaging Corp. has a basic earning power of (BEP) of 9% on $9 billion of total assets, and its times interest earned (TIE) ratio is 3.0. Peterson's depreciation and amortization expense totals $1 billion. It has $0.6 billion in lease paymen..
What will be new required return : Oakdale Furniture Inc. has a beta coefficient of 0.7 and a required rate of return of 15%. The market risk premium is currently 5%. If the inflation premium increases by 2%, and Oakdale acquires new assets that increase its beta by 50%, what will be ..

Reviews

Write a Review

Financial Management Questions & Answers

  Effective interest rate

Effective interest rate. You borrow $55,000; the annual loan payments are $3,180.66 for 30 years. What interest rate are you being charged?

  Managing its accounts receivable and inventory

You wish to know how well a company is managing its accounts receivable and inventory. You will be looking at:

  Charges customers for their wind generated electricity

Viento Windmills is a utility that charges customers for their wind generated electricity. With their current technology, they earn a total of $65 million each year to pay out to their 3 million shareholders.

  New depositor opens

When a new depositor opens a $5,000 CD at Melvin's Bank, its assets ________ and its liabilities _____

  The debt value of operating leases

Taco Shell Inc. is a restaurant with operating lease commitments of $30 million a year for the next 8 years. It has a cost of capital of 8%, a cost of equity of 10%, a pre-­-tax cost of debt of 4% and an after-­-tax cost of debt of 2.5%. Which of the..

  Using the SOYD deprecation method

George bought a piece of equivalent for 35,000$. The equipment has a useful life of 10 years and a salvage value of 2,000$ at the end of its useful life. Assume that the annual interest rate is 9%. Calculate the present value of deprecation, using th..

  What is the required rate of return on the market

Mulherin's stock has a beta of 1.23, its required return is 11.75%, and the risk-free rate is 4.30%. What is the required rate of return on the market? (Hint: First find the market risk premium.)

  How much will the stock appreciate in dollar amount

You can purchase tango co common stock at $48 per share, after 1 year, sell the stock once the $3.75 dividend is paid. Given a required rate of 14%, what is the stock price and how much will the stock price and how much will the stock appreciate in d..

  What is expected value of each quarterly dividend payment

James River Corp has preferred stock outstanding that trades at $125. If the stock yields 8%, what is the expected value of each quarterly dividend payment?

  Annual pretax cost savings

Whether to lease or buy? New system will provide $2.7 million in annual pretax cost savings. It costs $9.4 million depreciated straight-line to zero over 5 years. Tax rate is 34 percent, and borrow rate is 9 percent. Lease can be done for $2.5 millio..

  Effective annual cost of the least expensive type of credit

Yonge Corporation must arrange financing for its working capital requirements for the coming year. Yonge can: (a) borrow from its bank on a simple interest basis (interest payable at the end of the loan) for 1 year at a 12% nominal rate; What is the ..

  Analyze economic-political environment in budget development

Prepare an APA written paper that includes citations from professional literature relating to Higher Education. Analyze the budget processes of private and public colleges/universities. Analyze the economic/political environment in which budget devel..

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