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Inessa [10]
3 years ago
12

Manufacturer's Inc. estimates that its interest charges for this year will be $700 and that its net income will be $3,000. Assum

ing its average tax rate is 30 percent, what is the company's estimated times-interest-earned ratio?
Business
1 answer:
just olya [345]3 years ago
7 0

Answer:

TIE = 4,985.71

Explanation:

TIE = \frac{EBIT}{interest \: expense}

net income / (1 - tax-rate) = Earnings before taxes

3,000 / 0.7 = 4,285.71

Earnigns before taxes + interest = EBIT (earnings before interest and taxes)

4,285.71 + 700 = 4,985.71

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<h3>When would a firm shut down in the short run?</h3>

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To learn more about when a firm should shut down, please check: brainly.com/question/13034691

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Suppose Rina earns $550 per week working as a doctor for the Medical Clinic. She uses $9 to buy a box of aspirin at Pillmart Pha
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Answer:

Identify whether each of the following events in this scenario occurs in the resource market or the product market.Event - Resource Market - /Product Market

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Purchase of services In the product market. Bob(families)  purchase from a Firm

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