All categories

3 years ago

Use the following information to answer this question.

Business

1 answer:

serg [7]3 years ago

5 0

Answer:

21.08 times

Explanation:

Calculation to determine the cash coverage ratio for 2017

Using this formula

Cash coverage ratio=(Earnings before interest and taxes+Depreciation)/Interest paid

Let plug in the formula

Cash coverage ratio= ($1,640+$320)/$93

Cash coverage ratio=$1,960/$93

Cash coverage ratio = 21.08 times

Therefore the cash coverage ratio for 2017 is 21.08 times

You might be interested in

The United States and Saudi Arabia engage in trade. The Saudi riyal appreciated significantly compared to the US dollar over the

inn [45]

Answer:The second one

Explanation:

8 0

3 years ago

25 points and brianly

horsena [70]

Answer:

Sentence 3

Explanation:

5 0

3 years ago

Read 2 more answers

Kingbird, Inc. receives a $11000, 9-month, 6% promissory note from Sunland Company in settlement of an open accounts receivable.

Scorpion4ik [409]

Answer and Explanation:

The journal entry at the time of receiving the note is as follows:

Note receivable Dr $11,000

To Account receivable $11,000

(Being the note receivable is recorded)

Here the note receivable is debited as it increased the assets and credited the account receivable as it decreased the assets

6 0

3 years ago

Ramble On Co. wishes to maintain a growth rate of 8 percent a year, a debt-equity ratio of 0.37, and a dividend payout ratio of

Delvig [45]

Answer: 16.55%

Explanation:

Profit margin is the amount of earnings that a company has left when every expenses and costs have been deducted.

From the information given, firstly, we calculate the return on equity. This will be:

= Growth rate /(1 + Growth rate) × Retention ratio

= 8% / (1 + 8%) × 46%

= 0.08/(1 + 0.08) × 0.46

= 0.08/1.08 × 0.46

= 0.08/0.4968

= 0.1610

= 16.10%

Return on equity, ROE = 16.10%

We then calculate the profit margin. This will be:

= ROE / Asset turnover × Equity Multiplier

where,

Equity Multiplier = 1 + debt-equity ratio

= 1 + 0.37 = 1.37

Profit margin = ROE / Asset turnover × Equity Multiplier

= 16.10% / {(1/1.41) × 1.37}

= 16.10% / 0.71 × 1.37

= 0.1610 / 0.9727

= 0.1655

Profit margin = 16.55%

6 0

3 years ago

Firm A and Firm B join to create Firm AB. This is an example of: a tender offer. an acquisition of stock. an acquisition of asse

klio [65]

Firm A and Firm B join to create Firm AB. This is an example of a consolidation

Consolidation :

Business consolidation is a combination of several business units or companies into a single, larger organization. The reasons behind consolidation include operational efficiency, eliminating competition, and getting access to new markets.

What is the process of consolidation?

Consolidation processes consist of the assembly of smaller objects into a single product in order to achieve a desired geometry, structure, or property. These processes rely on the application of mechanical, chemical, or thermal energy to effect consolidation and achieve bonding between objects

What is financial consolidation?

Financial consolidation is the process of combining financial data from several departments or business entities within an organization, usually for reporting purposes. To consolidate is to join things together.

Merger :

A merger is an agreement that unites two existing companies into one new company. There are several types of mergers and also several reasons why companies complete mergers. Mergers and acquisitions (M&A) are commonly done to expand a company's reach, expand into new segments, or gain market share.

Learn more about acquisition of stock :

brainly.com/question/14530848

#SPJ4

8 0

2 years ago