Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Aug 10, 2024

Lever Age pays an 10% rate of interest on $10.80 million of outstanding debt with face value $10.8 million. The firms EBIT was $1.8 million.

Lever Age pays an 10% rate of interest on $10.80 million of outstanding debt with face value $10.8 million. The firms EBIT was $1.8 million.

a. What is its times interest earned? (Round your answer to 2 decimal places.)

b. If depreciation is $280,000, what is its cash coverage ratio? (Round your answer to 2 decimal places.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

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

Recommended Textbook for

Essentials Of Financial Management Text And Cases

Authors: George C Philippatos

1st Edition

0816267162, 978-0816267163

More Books

Students also viewed these Finance questions

Question

★★★★★

The area of the aortic valve, Av in cm2, can be estimated by the equation (Hakki Formula): Av = QPG where Q is the cardiac output in L/min, and PG is the difference between the left ventricular...

Answered: 1 week ago

Question

★★★★★

6. Suppose X is G(1,). Find g such that g(X)g() is AN(0, c).

Answered: 1 week ago

Question

★★★★★

Lisa Garrett has been a shift scheduler at a local fast-food chain for the past three years. Although the restaurants patronage is relatively stable, employee attendance is not. For the most part the...

Answered: 1 week ago

Question

★★★★★

Exercise 12-14 Presented below is net asset information related to the Marin Division of Santana, Inc. MARIN DIVISION NET ASSETS AS OF DECEMBER 31, 2017 (IN MILLIONS) Cash $64 Accounts receivable 213...

Answered: 1 week ago

Question

★★★★★

On February 1, 2018, Hill Co. decides to invest excess cash of $17,000 by purchasing a Hunter, Inc. bond at face value. At year-end, December 31, 2018, the fair value of the Hunter bond was $20,900....

Answered: 1 week ago

Question

★★★★★

Alpha Appliances, Inc. Alpha Appliances, Inc. is a major distributor of household appliances. Its customer base consists of local retailers who stock a variety of products including appliances. Alpha...

Answered: 1 week ago

Question

★★★★★

You built a dashboard with several views exploring your product inventory data set. One of the views should display only products that have a quantity below 50. Which type of filter should you use in...

Answered: 1 week ago

Question

★★★★★

Suppose the accompanying data are from a paper on a community of Antarctic penguins. They represent the body mass (in grams) for a sample of 10 female chinstrap penguins. 3,350 3,250 3,800 3,550...

Answered: 1 week ago

Question

★★★★★

In the mass production of engine blocks for a single cylinder, the tolerance in the diameter (D) of the cylinders is normally distributed. The average diameter of the cylinders has been measured to...

Answered: 1 week ago

Question

★★★★★

The average weight of a particular box of crackers is 24.5 ounces with a standard deviation of 0.8 ounce. The weights of the boxes are normally distributed. a. What percent of the boxes weigh more...

Answered: 1 week ago

Question

★★★★★

1 Analyse the Newman Academy Secondary School by comparing the steps taken with those of Kotter and Cohens model, which was introduced earlier. The 60 faculty members in the Newman Academy Secondary...

Answered: 1 week ago

Question

★★★★★

2 Why might the issue of trust be particularly important in managing change? In 2002 the British Museum was regarded as being in crisis (Edwards, 2005). There had been a downturn in tourism...

Answered: 1 week ago

Question

★★★★★

Have you been clear about where you are focusing and where you are reducing focus/investment?

Answered: 1 week ago

Previous Question Next Question