What is its times-interest-earned ratio

Assignment Help Financial Management
Reference no: EM131444313

Thomson Trucking has $18 billion in assets, and its tax rate is 35%. Its basic earning power (BEP) ratio is 12%, and its return on assets (ROA) is 4%. What is its times-interest-earned (TIE) ratio? Round your answer to two decimal places.

Reference no: EM131444313

Questions Cloud

What is the benefit-cost ratio of this project : A plastics manufacturing plant is proposed for Lewisburg, PA that would require initial construction costs of $17.5 million, and annual operations and maintenance costs of $325 thousand. In addition, every fifth year, an overhaul of the plant equipme..
Different capital structures all-equity plan-levered plan : Kyle Corporation is comparing two different capital structures, an all-equity plan (Plan I) and a levered plan (Plan II). Under Plan I, the company would have 785,000 shares of stock outstanding. Under Plan II, there would be 535,000 shares of stock ..
Unexpected operating cash flows : Put yourself in the shoes of a company president: The extremely successful launch of a new product has resulted in an additional $5 million in unexpected operating cash flows. You can think of several ways to use the extra $5 million. Determine how y..
Considering new three-year expansion project : Quad Enterprises is considering a new three-year expansion project that requires an initial fixed asset investment of $2.73 million. The fixed asset will be depreciated straight-line to zero over its three-year tax life. The project is estimated to g..
What is its times-interest-earned ratio : Thomson Trucking has $18 billion in assets, and its tax rate is 35%. Its basic earning power (BEP) ratio is 12%, and its return on assets (ROA) is 4%. What is its times-interest-earned (TIE) ratio?
How could this impact the company in the long-term : Put yourself in the shoes of a company president: The extremely successful launch of a new product has resulted in an additional $5 million in unexpected operating cash flows. You can think of several ways to use the extra $5 million. Think about the..
Compute what is the duration of this michigan bond : You bought EMU bond:  5-year, coupon= 12%,  paid semi-annually, par= $1,000, and YTM = 8%.  Compute: What price did you pay for the bond? What is the duration of this Michigan bond
Price and earnings ratio : PRICE/EARNINGS RATIO A company has an EPS of $3.60, a book value per share of $38.52, and a market/book ratio of 2.6x. What is its P/E ratio? The stock price should be rounded to the nearest cent. Round your answer to two decimal places.
Weighted average cost of capital : Cruiseliners, Inc. has 230,000 shares of common stock outstanding at a market price of $40 a share. Cruiseliners' just paid an annual dividend in the amount of $1.75 per share. The dividend growth rate is 3 percent. The bonds are selling at 102 perce..

Reviews

Write a Review

Financial Management Questions & Answers

  Payments are annual and the loan will negatively amortize

Instruction as how you solve with a financial calculator is preferred. A business borrows $325,914 for 8 years at an annual rate of interest of 6.1%. If payments are annual and the loan will negatively amortize by $30,539, what will be the annual pay..

  Yield to maturity and future price

Yield to maturity and future price- A bond has a $1,000 par value, 7 years to maturity, and a 9% annual coupon and sells for $1,095. What is its yield to maturity (YTM)? Round your answer to two decimal places.

  Capital budjeting analysis as a part of a final cash flow

Assume the company is now at the end of the final year of a project and 75% of the equipment cost has been depreciated. The firm can sell the used equipment today at the market price the exceeds equipment residual value How a taxable income will be c..

  Most apt to prefer a stock with low-dividend payout policy

Which one of these parties is most apt to prefer a stock with a low-dividend payout policy?

  The basis used to calculate his gain or loss

Reggie purchased 100 shares of SportsFan, Inc. five years ago for $5,000. He just gave those shares to his son, R.J, and the value of the 100 shares of stock on the date of the gift was $1,000. If R.J. subsequently sells the shares of SportsFan, Inc...

  An increase in future value can be caused by an increase

An increase in future value can be caused by an increase in the

  How much will you have in the account

How much is a guaranteed promise of $15,600 to be received in 11 years worth today if interest is 11%? If you deposit $240.78 in an account that pays 3% and leave it there for 11 years, how much will you have in the account? How much will $183 grow i..

  How many more dollars of contribution margin

Digby Corp. ended the year carrying $20,263,000 worth of inventory. Had they sold their entire inventory at their current prices, how many more dollars of contribution margin would it have brought to Digby Corp.?

  What defense did the corporate insiders use

Who is a corporate insider? Is it illegal for a corporate insider to own stock in his corporation? When does insider trading illegal? What defense did the corporate insiders use? What are short swing profits?

  What are the monthly payments if you only paid interest

You wish to buy a $14,000 dining room set. The furniture store offers you a five-year loan with a 11 percent APR. What are the monthly payments? What are the monthly payments if you only paid interest over the length of the loan and your principal ba..

  Determining the compounding of interest

What will $164,000 grow to be in 6 years if it is invested today in an account with a quoted annual interest rate of 13% with weekly compounding of interest? (Assume 52 weeks per year.)

  Jeopardizing its ratio of capital to assets

Second National Bank is forecasting a return on equity of 15 percent for this year. The board of directors wants to maintain its current policy of paying the bank's stockholders 40 percent of any net earnings the bank will earn. How fast can the bank..

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