Question
Use the following information to answer the next question. Total Asset = $40 million Depreciation = $1.0 million. Basic earning power (BEP) ratio is 20%
Use the following information to answer the next question.
Total Asset = $40 million Depreciation = $1.0 million. Basic earning power (BEP) ratio is 20% Lease payments = 0.6 million. Times-interest-earned (TIE) ratio is 6.55. Principal payments = 4 million.
What is the companys EBIT? The companys interest expense?
a) $3.33 million; $0.83 million b) $1.35 million; $0.37 million c) $8.0 million; $1.22 million d) $8.0 million; $0.62 million e) $7.5 million; $0.75 million
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Short Term Financial Management
Authors: Terry S. Maness, John T. Zietlow
2nd Edition
0030315131, 978-0030315138
