Question
As the chief financial officer of Adirondack Designs, you have the following information: Next years expected net income after tax but before new financing $
As the chief financial officer of Adirondack Designs, you have the following information: Next years expected net income after tax but before new financing $ 53 million Sinking-fund payments due next year on the existing debt $ 28 million Interest due next year on the existing debt $ 23 million Common stock price, per share $ 34.5 Common shares outstanding 33 million Company tax rate 45% Calculate Adirondacks times-interest-earned ratio for next year assuming the firm raises $63 million of new debt at an interest rate of 5 percent. Calculate Adirondacks times-burden-covered ratio for next year assuming annual sinking-fund payments on the new debt will equal $2.0 million. Calculate next years earnings per share assuming Adirondack raises the $63 mill
Note: Do not round intermediate calculations. Round "Earnings per share" answers to 2 decimal places and other answers to 1 decimal place.
a. Times interest earned | |
b. Times burden covered | |
c. Earnings per share | |
d. Times interest earned | |
d. Times burden covered | |
d. Earnings per share |
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