Answer:
(A) Interest coverage charge ratio= 6.21
(B) Fixed charge coverage = 2.84
(C) Profit margin ratio= 8.57%
(D) Total assets turnover= 1.55
(E) Return on assets= 13.26%
Explanation:
(A) The Interest coverage charge ratio can be calculated as follows= EBIT/Interest expense
= 45,300/7,300
= 6.21
(B) The fixed charge coverage can be calculated as follows
= income before fixed charge + interest/fixed charges + interest
= 45,300+13,300/7,300+13,300
= 58,600/20,600
= 2.84
(C) The profit margin ratio can be calculated as follows
= Net income/sales × 100
= 22,800/266,000 × 100
=0.0857 × 100
= 8.57%
(D) The total assets turnover can be calculated as follows
= Sales/total assets
= 266,000/172,000
= 1.55
(E) The return on assets can be calculated as follows
= Net income/Total assets × 100
= 22,800/172,000 × 100
= 0.13255×100
= 13.26%
Answer:
The answer is 5.559539 or 5.56.
Explanation:
From the given question let us recall the following statements
The current price of A put option on a stock = $47
With an exercise price of $49
Annual risk-free rate of annual interest is = 5%
The corresponding price call option is = $4.3
The next step is to find the put value
Now,
The Call price + Strike/(1+risk free interest) The Time to maturity =
Spot + Put price
Thus
The,Put price = Call price - Spot + Strike/(1+risk free interest)Time to maturity
When we Substitute the values, we get,
Put price = (4.35 - 47) + 49/1.05 4/12
Therefore, The Put Price = 5.559539 or 5.56
It gives you more ideas to make the final product better than what it original product
Answer:
Dr Deferred Tax Liability $3,750,000
Cr Income Tax Benefit-Operating Loss $3,750,000
Explanation:
Based on the information given we were told that net operating loss of the amount of $15 million was reported for financial reporting and tax purposes in which the tax rate is 25%. Therefore the journal entry to recognize the income tax benefit of the net operating loss will be :
Dr Deferred Tax Liability $3,750,000
Cr Income Tax Benefit-Operating Loss $3,750,000
($15 million *25%)
