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olasank [31]
3 years ago
5

The Morrit Corporation has $1,080,000 of debt outstanding, and it pays an interest rate of 11% annually. Morrit's annual sales a

re $6 million, its average tax rate is 25%, and its net profit margin on sales is 3%. If the company does not maintain a TIE ratio of at least 6 to 1, then its bank will refuse to renew the loan, and bankruptcy will result. What is Morrit's TIE ratio?
Business
1 answer:
alukav5142 [94]3 years ago
7 0

Answer:

3.020

Explanation:

Morrit Corporation

interest amount = $1,080,000*.11 = $118,800

Net profit = 3% *$6,000,000= $180,000

Net profit + tax = profit before tax =

180000/.75 = 240000

Profit before tax + Interest = Earning before interest and tax

= $240,000+$118,800 = $358,800

TIE ratio= EBIT/Interest = $358,800/118,800

= 3.020

Therefore the TIE ratio is 3.020

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In a 1960s movie, an heiress sends out thousands of letters to shareholders in an attempt to have them vote for her and for the
Vitek1552 [10]

Answer:

The kind of corporate takeover technique implemented in the film is proxy fight.

Explanation:

A proxy fight is termed as a technique where two corporate factions ask the stakeholders for the proxy votes such that the right of voting is transferred.

In this case both the parties, the heiress as well as the opponent is asking for the right of vote from  stakeholders so that they can decide the corporate future. This is the key feature of the proxy fight and thus this is the correct option.

6 0
3 years ago
During which phase must project teams address important considerations for managing information (and often end up updating busin
beks73 [17]

Answer:

execution

Explanation:

The phase in which project teams address important considerations for managing information (and often end up updating business processes through improved communications) is execution phase.

Execution phase has a very long process in project management, in this phase information has to be managed,it is in this phase of management that the product and services that the organization render is been delivered to the customers. And most importantly, communication has to been improved between the company and their clients.

6 0
3 years ago
As you read the business news, you come across an advertisement for a bond mutual fund – a fund that pools the investments fro
Alika [10]

Answer:

Follows are the solution to this question:

Explanation:

Follows are the two ways of describing its high return:

Firstly, the mutual fund is invested in pretty unstable debt and is reciprocating with greater yields for taking a risk.

Secondly, during every decrease in bond yields, the finance kept bonds so the income on stocks exceeded this same rate of interest significantly. Remember that bond costs skyrocket as interest rates drop as well as give the purchaser an investment income. Because once interest rates are now close to zero, it's also likely that they could increase as well as the owners would then lose their money. Its high return could be due to a drop in interest rates, and not only will it not be replicated, but the low or even low return will almost definitely be followed by either a rise in interest rates.

6 0
3 years ago
An investor, such as a bank, may prefer to invest in securities backed by a pool of mortgages purchased in the secondary market
kati45 [8]

Answer:

b. mortgage backed securities diversify credit risk for the investor.

Explanation:

An investor, such as a bank, may prefer to invest in securities backed by a pool of mortgages purchased in the secondary market rather than in an equal dollar amount of mortgage loans because <u>mortgage backed securities diversify credit risk for the investor.</u>

In Mortgage Backed Securities, credit risk is diversified as there are many borrowers and investors between whom credit risk diversifies. So that makes investor such as bank prefer the option.

8 0
3 years ago
The company is in the process of preparing a cash budget and must determine the expected cash collections by month. To this end,
nydimaria [60]

Answer: $186,000

Explanation:

January is the 2nd month from November which means that all of November's $31,000 will be collected in January.

January is the first month after December so 30% of December sales should be collected in January. 50% has already been collected in December and this left $50,000.

Total credit sales in December must have been:

= 50,000 / 50%

= $100,000

Amount to be collected in January for December:

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= $30,000

Amount to be collected from January credit sales:

= 50% * 150,000

= $75,000

January cash sales = $50,000

Total cash in January :

= 31,000 + 30,000 + 75,000 + 50,000

= $186,000

4 0
3 years ago
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