Entries by Hannah Wangui

rate of interest

Question Lever Age pays an 9% rate of interest on $10.10 million of outstanding debt with face value $10.1 million. The firm’s EBIT was $1.1 million. a. What is its times interest earned? (Round your answer to 2 decimal places.) b. If depreciation is $210,000, what is its cash coverage ratio? (Round your answer to 2 decimal places.)   […]

 

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capitalization

Question Home Depot entered fiscal 2016 with a total capitalization of $27,246 million. In 2016, debt investors received interest income of $841 million. Net income to shareholders was $6,378 million. (Assume a tax rate of 35%.) Calculate the economic value added assuming its cost of capital is 10%. (Do not round intermediate calculations. Enter your answer […]

 

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sales

Question Torrid Romance Publishers has total receivables of $2,920, which represents 20 days’ sales. Total assets are $73,000. The firm’s operating profit margin is 6%. Find the firm’s ROA and asset turnover ratio. (Use 365 days in a year. Do not round intermediate calculations. Round your final answers to 2 decimal places.) Asset turnover ratio ROA% […]

 

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