What is its times-interest-earned ratio

Assignment Help Financial Management
Reference no: EM131339666

Graser Trucking has $19 billion in assets, and its tax rate is 40%. Its basic earning power (BEP) ratio is 13%, and its return on assets (ROA) is 5%. What is its times-interest-earned (TIE) ratio? Round your answer to two decimal places.

Reference no: EM131339666

Questions Cloud

Considering two securities : Aibell would like to invest $14,000 and have a portfolio expected return of 10.31 percent. She is considering two securities, A and B. A has an expected return of 11.22 percent and B has an expected return of 7.62 percent. How much should she invest ..
How much equity have you built up halfway through the term : This exercise is designed to be solved using technology such as calculators or computer spreadsheets. You borrow $20,000 with a term of four years at an APR of 6%. Make an amortization table. How much equity have you built up halfway through the term..
Portfolio that is invested in stock : Brigid owns a $90,000 portfolio that is invested in stock A and B. The portfolio beta is equal to the market beta. Stock A has an expected return of 13.43 percent and a beta of 1.25. Stock B has a beta of 0.73. What is the value of Brigid's investmen..
Using the constant growth dividend model : The required return (using the constant growth dividend model) for a share of stock is equal to: Your opinion is that CSCO has an expected rate of return of 0.1375. It has a beta of 1.3. The risk-free rate is 0.04 and the market expected rate of retu..
What is its times-interest-earned ratio : Graser Trucking has $19 billion in assets, and its tax rate is 40%. Its basic earning power (BEP) ratio is 13%, and its return on assets (ROA) is 5%. What is its times-interest-earned (TIE) ratio?
Find the present value of these cash flows : You have accumulated some money for your retirement. you are going to withdraw $86,264 every year at the end of the year for the next 15 years. how much money have you accumulated for your retirement? your account pays you 3.17% per year compounded a..
What the dell decision teaches us about valuation : The ruling involving Michael Dell’s management buyout highlights why two reputable share-valuation experts could differ by 126%. The May 31 Delaware Court of Chancery Decision In Re: Appraisal of Dell, Inc. highlights many of the valuation issues fac..
How much money will be in account at the end of that time : You have decided to place $442 in equal deposits every month at the beginning of the month into a savings account earning 3.40% per year,compounded monthly, for the next 6 years. the first deposit is made today. how much money will be in the account ..
What is the real rate of return for large-cap stocks : Large-cap stocks had the nominal rates of return of 6.58 percent. The rate of inflation during the last year was 4.87 percent. What is the real rate of return for large-cap stocks?

Reviews

Write a Review

Financial Management Questions & Answers

  Numerous opportunities to expand in foreign countries

ABC Co. has recognized numerous opportunities to expand in foreign countries and has assessed many foreign markets, including Brazil, Greece, Mexico, Portugal, Singapore, and Thailand. What comparative advantage does ABC have when establishing a stor..

  Find the present value of an annuity

Find the Present Value of an annuity that pays $1000 per year for 12 years at 10%? How would your answer change if the payments are made at the beginning of the year?

  Weighted average cost of capital and debt

Blue Bottling, Inc. (BBI), is a bottling company and is considering expanding into filling 16-ounce bottles. In order to do so, BBI must purchase a new bottling machine. The machine would not replace the machine used to fill 32-ounce bottles. Current..

  Difference between income statement and balance sheet

Discuss the main financial statement (Review the main financial statements. Explain the difference between,income statement, balance sheet and cash flow statements with one example for each.) Compare appropriate formats of financial statements for di..

  How companys rate sensitivity gap differ from most banks

How does the company's rate-sensitivity gap differ from those of most banks? - What deal could Ashley and Melvin make to reduce risk for both of their institutions?

  Tax cut on households present value of lifetime resources

Suppose a government lives for two periods. It makes an exogenous amount of government expenditures each period. These have nominal value P1G1 = 100 and P2G2 = 50. It also charges households a lump sum tax, Tt each period. Write down the government’s..

  Find capital loss or depreciation recapture of alternative

Frank's Fruitcakes is looking to purchase a web server system for e-business. Alternative 1 is to purchase an off-brand system, with equipment costing $50,000. Training, installation, and operating costs are shown in the expense column of the table b..

  What is the present value of your firms cash flows for years

Your consulting firm will produce cash flows of $130,000 this year, and you expect cash flow to keep pace with any increase in the general level of prices. The interest rate currently is 6.6%, and you anticipate inflation of about 2.6%. What is the p..

  Hypothetical convertible bond

Consider the following hypothetical convertible bond:

  What was lance murdocks rate of return

If you are offered $340,000 in 15 years and you can earn 13 percent on your money, what is the present value of $340,000? Lance Murdock purchased a wooden statue of a Conquistador for $7,500 to put in his home office 6 years ago. Lance has recently m..

  What are the bonds nominal yield to maturity

Last year TA Co. issued a 10-year, 12% semiannual coupon bond at its par value of $1,000. Currently the bond can be called in 4 years at a price of $1,060 and it sells for $1,100. What are the bond’s nominal yield to maturity and its nominal yield to..

  How would stephanies mutual fund investing decisions

How would Stephanie's mutual fund investing decisions be affected if she were 35 years old? If she were 50 years old?

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