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Dmitry_Shevchenko [17]
3 years ago
6

A firm has an operating profit (EBIT) of $600 on sales of $1,000. Interest expense is $250 and taxes are $120. What is the times

interest earned ratio?
Business
1 answer:
Nezavi [6.7K]3 years ago
8 0

Answer:

2.4 times

Explanation:

The formula to compute the times interest earned ratio is shown below:

Times interest earned ratio = (Earnings before interest and taxes) ÷ (Interest expense)

= $600 ÷ $250

= 2.4 times

In order to find out the times interest earned ratio, we divide the operating profit or earnings before interest and taxes by the interest expense so that it could come

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Quantitative Problem 2: Hadley Inc. forecasts the year-end free cash flows (in millions) shown below.
Katarina [22]

The stock price is mathematically given as

P=$57.64

<h3>What is the stock price?</h3>

Generally, the equation for is Value after year  mathematically given as

V=\frac{(FCF for year 5*Growth rate)}{(WACC-Growth rate)}\\\\V = \frac{(55.4*1.05)}{(0.09-0.05)}

V= $1454.25

Hence, the current value is mathematically given as

I=Discounting factor equal to the future cash flows multiplied by their present value

I=\frac{-22.76}{1.09} + \frac{38.8}{1.09^2}+ \frac{43.4}{1.09^3}+\frac{52.3}{1.09^4}+\frac{55.4}{1.09^5}+\frac{1454.25}{1.09^5}

I=$1063.508769

current value for ordinary stock

I'=$1037.508769million

In conclusion, the stock price is

P=(1037.508769/18)

P=$57.64

Read more about the stock price

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5 0
2 years ago
To get the best understanding of your observations, you should consider
bulgar [2K]

The correct option is B. their goals and strategies for learning.

Took the pf test and got 100%

7 0
3 years ago
Lucia's bank offers a savings account with a 1.9% APR, compounded monthly. What is the actual percentage yield on this account?
alexira [117]
I've taken this quiz, 1.92% is the right answer.
5 0
3 years ago
Read 2 more answers
Money market refers to:
Ivanshal [37]

Answer:

Dealing in debt of less than one year.

Used by governments / corporations to keep their cash flow coming in.

Explanation:

3 0
3 years ago
Carl Sonntag wanted to compare what proceeds he would receive with a simple interest note versus a simple discount note. Both ha
nadya68 [22]

Answer:

The proceeds from the simple discount note is $16380 , while that of simple interest is $19500

Explanation:

Simple discount notes could likened to a bank loan where interest on the loan is taken from the borrowed funds before disbursement to the loan's beneficiary,hence proceeds from such notes is face value of the notes less interest taken in advance.

While on the other hand,the proceeds from simple interest note is par or face value.

The discount or interest  is =8%*$19500=$1560 for one year,but $3120  for two years($1560*2)

The proceeds on the simple discount note =$19500-$3120

                                                                         =$16380

The proceeds on the simple interest note is face value of $19500

3 0
3 years ago
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