Question
Last year, TVG had revenue of $2.9 million, cost of goods sold of $2.4 million and depreciation expense of $110,000. The firm has a single
Last year, TVG had revenue of $2.9 million, cost of goods sold of $2.4 million and depreciation expense of $110,000. The firm has a single outstanding debt issue with a book value of $1.2 million and pays an interest rate of 10%.
Required:
What is the firm's rate at which it earned interest times?
(Do not round intermediate calculations. Round your answer to 2 decimal places.)
Step by Step Solution
3.39 Rating (146 Votes )
There are 3 Steps involved in it
Step: 1
To calculate the firms rate at which it earned interest time...
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Fundamentals of Corporate Finance
Authors: Richard Brealey, Stewart Myers, Alan Marcus
8th edition
77861620, 978-0077861629
