What is the firm interest coverage ratio

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Reference no: EM13935164

A firm has a profit margin of 15% on sales of $20,000,000. If the firm has total assets of $25,000,000, a total debt-equity ratio of 25% and its stock is selling at $36. The total asset turnover ratio 80%? What is the ROE?

Then suppose the firm has total interest charges of $500,000 per year, and a tax rate of 40%. What is the firm's interest coverage ratio?

Reference no: EM13935164

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