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Marina86 [1]
2 years ago
6

In the following information, what is the times interest earned ratio?

Business
1 answer:
Ilya [14]2 years ago
7 0

Answer:

TIE = 150,000 / 5,000 = 30

Explanation:

Times Interest Earned (TIE) = Earnings Before Interest and Tax (EBIT) / Interest Expense

TIE ratio shows the ability of a company to meet its interest payments on its debt (solvency), expressed in times.  

In this case 3.33% of the operating profits goes towards servicing the debt or the operating income are 30 times the annual interest expense.

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You are considering an investment in Justus Corporation's stock, which is expected to pay a dividend of $1.50 a share at the end
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Answer:

44.35

Explanation:

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\frac{divends}{return-growth} = Intrinsic \: Value

we clear for g

return - \frac{divends}{stock} = grow

to find the return we use CAPM

Ke= r_f + \beta (r_m-r_f)  

risk free 0.032

market rate

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this will be the return we use in the formula for grow

g = 0.0725 - 1.5/40 = 0.03500

At this rate our dividends will grow and also our share price

the stock in 3 years will be the current price capitalized with the grow rate

Stock \: (1+ grow)^{time} = Stock_{3years}

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time 3.00

rate         0.035

40 \: (1+ 0.035)^{3} = Stock_{3years}

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ludmilkaskok [199]

Answer:

Answer (A) - 1 and 2

Answer (B) - 3

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gulaghasi [49]

Answer:

a. Observance of reasonable commercial standards of fair dealing

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2 years ago
About this app<br> What is the benefit of this app
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Answer:

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Explanation:

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