Calculate the cash flow coverage ratio based on the following information: EBIT = $540,000; depreciation and amortization

Question:

Calculate the cash flow coverage ratio based on the following information: EBIT = $540,000; depreciation and amortization = $65,000; interest payments = $180,000; principal repayment = $75,000; and tax rate = 35 percent.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Financial Management Concepts and Applications

ISBN: 978-0132936644

1st edition

Authors: Stephen Foerster

See More Books

Question Posted: May 24, 2017 09:11 AM

See More Questions

Zoogle has the following selected data ($ in millions): Net sales .............. $24,651 Net income ............. 6,620 Operating cash flows ........ 9,326 Total assets, beginning ....... 41,768...
Zoogle has the following selected data ($ in millions): Net sales ............ $37,905 Net income ........... 9,737 Operating cash flows ....... 14,565 Total assets, beginning ..... 57,851 Total...
We can calculate cash flow from operations (CFO) as net income + non-cash expenses + change in working capital. In year 2, the change in working capital for Finns Fridges was $25. Find the CFO and...
George bought the following amounts of Stock A over the years: (Loss amounts should be indicated with a minus sign.) Number of Adjusted Basis $ 7,200 6,270 Date Purchased Shares Stock A 11/21/1993...
What will be the nominal rate of return on a perpetual preferred stock with a $100 par value, a stated dividend of 8% of par, and a current market price of (a) $60, (b) $80, (c) $100, and (d) $140?
Denmark Groves is considering buying high pressure scrubbing equipment that vacuums waste liquid into a storage tank and then purifies the waste. The wastewater can then be pumped back onto orchards....
2-10. En qu consiste la fase de implementacin del proceso de marketing estratgico ?
In an experiment designed to test the output levels of three different treatments, the following results were obtained: SST = 400, SSTR = 150, nT = 19. Set up the ANOVA table and test for any...
i want this FULL ANSWER in EXCEL only please Date Debit Credit Account Account Receivable 7/21 Scope The following transactions occurred for London Engineering July Owner contributed 55,000 in...
Ross White (see Problem 6-25) wants to reconsider his decision of buying the brackets and is considering making the brackets in-house. He has determined that setup costs would be $25 in machinist...
Calculate an EBIT breakeven between a debt firm (DF) and an all-equity firm (EF) based on the following information: DF interest = $40,000; DF number common shares = 6,000; EF number of common shares...
Suppose a firm has an EBIT of $5 million, interest expenses of $2 million, depreciation expenses of $1 million, and a tax rate of 35 percent. Its bank agrees to lend up to 4 times its EBITDA. How...
Which of the following would give the most assurance concerning the valuation assertion of debtors? (a) Tracing amounts in the subsidiary ledger to details on shipping documents. (b) Comparing...
1. Make a comparison between the leadership approaches "Trait Models" and "Behavioral Models". Discuss the main postulates and differences between the models and provide examples of a theory...
Applying the Central Limit Theorem: The amount of contaminants that are allowed in food products is determined by the FDA ( Food and Drug Administration ) . Common contaminants in cow milk include...
A collection of techniques used by social scientists to compile, summarize, and convey numerical data. Revised Research Question Hypothesis : Null Hypothesis : A null hypothesis, often known as H0,...
Adidas is an international sporting apparel/shoes brand. If Adidas was to enter a new foreign market, it would conduct a country market assessment. Identify the 4 components of the assessment....
Using the scenario linked in the Supporting Materials section, assume that you are the cost accountant for your company, and the CFO has asked for your analysis on purchasing materials from an online...
It is false that some recessions are not periods of economic decline. Therefore, it is false that no recessions are periods of economic decline. Use the traditional square of opposition to determine...
C- Consider the following scenario:- A supermarket needs to develop the following software to encourage regular customers. For this, the customer needs to supply his/her residence address, telephone...
Commercial banks moved heavily into equipment leasing during the early 1970s, acting as lessors. One major reason for this invasion of the leasing industry was to gain the benefits of accelerated...
Commercial banks moved heavily into equipment leasing during the early 1970s, acting as lessors. One major reason for this invasion of the leasing industry was to gain the benefits of accelerated...
One alleged advantage of leasing voiced in the past is that it kept liabilities off the balance sheet, thus making it possible for a firm to obtain more leverage than it otherwise could have. This...
Fig 1. Rolling a 4 on a D4 A four sided die (D4), shaped like a pyramid (or tetrahedron), has 4 flat surfaces opposite four corner points. A number (1, 2, 3, or 4) appears close to the edge of each...
I just need help with question #4 please! Thank you! Windsor Manufacturing uses MRP to schedule its production. Below is the Bill of Material (BOM) for Product A. The quantity needed of the part...
(25) Suppose that we have an economy consisting of two farmers, Cornelius and Wheaton, who unsurprisingly farm corn c and wheat w, respectively. Assume that both farmers produce their crop of choice...

Calculate the cash flow coverage ratio based on the following information: EBIT = $540,000; depreciation and amortization

Question:

Step by Step Answer:

Cash flow coverage EBITDA int payments beforetax cos...View the full answer

Financial Management Concepts and Applications

Students also viewed these Finance questions