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liubo4ka [24]
3 years ago
11

Suppose a firm wants to maintain a specific TIE ratio. It knows the amount of its debt, the interest rate on that debt, the appl

icable tax rate, and its operating costs. With this information, the firm can calculate the amount of sales required to achieve its target TIE ratio.
a. True
b. False
Business
1 answer:
ra1l [238]3 years ago
3 0

Answer:

a. True

Explanation:

TIE means times interest earned, whose formula is provided below:

Times interest earned=EBIT/interest expense

With the above formula, we can determine the EBIT (earnings before interest and tax)

Depending on the company's cost structure, when  the operating costs are added to EBIT, the result would be the company's sales revenue

EBIT=Sales revenue-operating costs

Sales revenue=EBIT+operating costs

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XZYY, Inc. currently has an issue of bonds outstanding that will mature in 31 years. The bonds have a face value of $1,000 and a
Mamont248 [21]

Answer:

7.31%

Explanation:

The question is pointing at the bond's yield to maturity.

The yield to maturity can be computed using the rate formula in excel as provided below:

=rate(nper,pmt,-pv,fv)

nper is the number of times the bond would pay annual coupons which is 31

pmt is the annual coupon payment i.e $1000*8.0%=$80.00

pv is the current price of the bond which is $1,084

fv is the face value of the bond which is $1,000

=rate(31,80,-1084,1000)=7.31%

The yield to maturity is 7.31%

That is the annual rate of return for an investor that holds the bond till maturity.

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3 years ago
A u.s. manufacturer that exports goods made at its u.s. plants for shipment to foreign markets:
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A U.S. producer that exports merchandise made at its U.S. plants for shipment to outside markets becomes more focused in remote markets or in foreign markets when the U.S. dollar decreases in values against the currencies or money of the other nations or countries to which it is trading.
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3 years ago
PLEASE HELP ASAP!!!! CORRECT ANSWERS ONLY PLEASE!!!!
daser333 [38]
C. Opening a bank. 

Because your opening up an bank account, therefore you not using any kind of money, or credit. UNTIL you put something inside the account. 

6 0
3 years ago
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You own a stock portfolio invested 30 percent in Stock Q, 25 percent in Stock R, 25 percent in Stock S, and 20 percent in Stock
Reptile [31]

Answer:

Portfolio beta = 1.1075

Explanation:

The portfolio beta is a function of the weighted average of the individual stocks betas' that form up the portfolio. To calculate the portfolio beta, we use the following formula,

Portfolio beta = wA * Beta of A + wB * Beta of B + ... + wN * Beta of N

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Portfolio beta = 0.30 * 0.95  +  0.25 * 1.12  +  0.25 * 1.13  +  0.20 * 1.30

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3 years ago
The most highly visible component of the marketing mix is?
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