### What is chutes interest coverage ratio

Assignment Help Financial Management
##### Reference no: EM131448503

Chutes & Co. has interest expense of \$ 1.91 million and an operating margin of 11.4 % on total sales of \$ 30.8 million. What is Chutes' interest coverage ratio? (Hint: Here, interest coverage ratio is operating income divided by interest expense)

A) The interest coverage ratio is ?(Round to one decimal place.)

#### Questions Cloud

 At what forward rate is this arbitrage eliminated : Assume that annual interest rates are 7 percent in the United States and 6 percent in Turkey. An FI can borrow (by issuing CDs) or lend (by purchasing CDs) at these rates. The spot rate is \$0.6667/Turkish lira (TL). At what forward rate is this arbit.. Assume the current spot price for crude oil : Assume the current spot price for crude oil is \$66.65 per barrel and the futures price for crude oil is \$66.70 per barrel. A futures contract is for 1000 barrels. On Monday, Stacey buys one futures contract from Ben. How much does Stacey pay Ben for .. What is the net interest income earned in dollars : Sun Bank USA has purchased a 8 million one-year Australian dollar loan that pays 15 percent interest annually The spot rate of U.S. dollars for Australian dollars is \$0.6250/A\$1. What is the net interest income earned in dollars on this one-year tran.. Common stock is expected to pay a dividend : risp Cookware's common stock is expected to pay a dividend of \$2.25 a share at the end of this year (D1 = \$2.25); its beta is 0.95; the risk-free rate is 3.4%; and the market risk premium is 4%. The dividend is expected to grow at some constant rate .. What is chutes interest coverage ratio : Chutes & Co. has interest expense of \$ 1.91 million and an operating margin of 11.4 % on total sales of \$ 30.8 million. What is Chutes' interest coverage ratio? Margin maintenance requirement : Assume the current spot price for crude oil is \$66.65 per barrel and the futures price for crude oil is \$66.70 per barrel. A futures contract is for 1000 barrels. On Monday, Stacey buys one futures contract from Ben. Both Stacey and Ben are speculato.. Describe key risk that could impact project : Describe a key risk (either one that is technical, external, or organizational) that could impact a project you are working on. Then, discuss if it has a High, Medium or Low probability of occurring and why. Next, determine if that risk happens what .. Compute proceeds of both strategies : You want to invest \$1,000,000,000 for one year. Assume the interest rate in the Australia is 6% and the interest rate in the United States is 1%. The current spot rate is AUD/\$ 1.32 and the one-year forward rate is AUD/\$ 1.3307. Would you prefer inve.. Full points rewarded homework problems : Full Points rewarded Homework Problems. ITs propiertorship, corporation, and partnership. Why are teams used for financial improvement of existing projects and analysis of new investments? What are the legal and financial differences among a proprito..

### Write a Review

#### Pledges to increase its dividend

Metroplex Corporation will pay a \$3.80 per share dividend next year. The company pledges to increase its dividend by 3.0 percent per year indefinitely. If you require an 11.9 percent return on your investment, you will pay \$___________ for the compan..

#### Cost of goods sold-administrative and selling expenses

During the year, Belyk Paving Co. had sales of \$2,392,000. Cost of goods sold, administrative and selling expenses, and depreciation expense were \$1,433,000, \$435,800, and \$490,800, respectively. In addition, the company had an interest expense of \$2..

#### What is the return on assets

The After Life has sales of \$428,300, total assets of \$389,100, and a profit margin of 7.2 percent. What is the return on assets?

#### Determine the probability of running out of cash

Buy-Low is considering a change in its capital structure that would increase its annual fixed charges by \$10 million. Determine the probability of running out of cash during the recession if change in capital structure is undertaken.

#### What will happen to sun devils stock price

If the risk-free rate of return declines to 6 percent, what will happen to Sun Devil's stock price? (Assume that the expected market rate of return remains at 14 percent.)

#### What must the coupon rate be on the bonds

Essary Enterprises has bonds on the market making annual payments, with eight years to maturity, a par value of \$1,000, and selling for \$952. At this price, the bonds yield 6.1 percent. What must the coupon rate be on the bonds?

#### What is nominal yield to maturity-nominal yield to call

A firm's bonds have a maturity of 10 years with a \$1,000 face value, have an 8% semiannual coupon, are callable in 5 years at \$1,053, and currently sell at a price of \$1,101.31. What is their nominal yield to maturity? What is their nominal yield to ..

#### What is the ex post real interest rate

Loretta agrees to lend Ted \$750,000 to buy computers for his consulting firm. They agree to a nominal interest rate of 9%. Both expect the inflation rate to be 3%. Calculate the expected real interest rate: If inflation turns out to be 4% over the li..

#### Markup on material and you wish to recoup all your costs

You own a car body/paint repair shop. You have been asked to submit a bid to repair ten (10) identical cars from a dealer lot that were all similarly damaged by a hail storm. Each car requires a new hood, roof, decklid, and total repainting. If there..

#### Increases its dividend plowback ratio

A firm has PVGO=0, and increases its dividend plowback ratio. All else equal you know that:

#### Paid an annual dividend

Three Corners Markets paid an annual dividend of \$1.37 a share last month. Today, the company announced that future dividends will be increasing by 2.8 percent annually. If you require a return of 11.6 percent, how much are you willing to pay to purc..

#### The divorce settlement stipulated

Patricia and Joe Payne are divorced. The divorce settlement stipulated that Joe pay \$500 a month for their daughter Suzanne until she turns 18 in 4 years. Interest is 12% a year. How much must Joe set aside today to meet the settlement?