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Anuta_ua [19.1K]
2 years ago
14

Assume a company's Income Statement for Year 12 is as follows Year 12 in 000s Income Statement Data Net Revenues from Footwear S

ales Cost of Pairs Sold Warehouse Expenses Marketing Expenses Administrative Expenses Operating Profit (Loss) Interest Income (Expense) Pre-tax Profit (Loss) Income Taxes Net Profit (Loss) $580,000 350,000 45,000 90,000 15,000 80,000 (20,000) 60,000 18,000 $42.000 Based on the above income statement data and the formula for calculating the interest coverage ratio presented in the Help section for p. 5 of the Footwear Industry Report, the company's interest coverage ratio is
A. 29.0
B. 2.20
C. 4.00
D. 3.00
E. 2.10
Business
1 answer:
eimsori [14]2 years ago
6 0

Answer:

C. 4.00

Explanation:

The interest coverage ratio is the same as times interest earned.

It is a the financial ratio that shows how many times over the income or earnings before interest and tax can be used to pay the interest payable in the same period.

Hence, Interest coverage

= Earnings before interest and taxes (EBIT) / Interest expense

EBIT = $580,000 - $350,000 - $45,000 - $90,000 -$15,000

= $80,000

The company's interest coverage ratio is

= $80,000/$20,000

= 4.00

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The fixed cost is $15000

<u>Explanation:</u>

Given:

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Each unit = $5 → (Price - variable cost = $5)

Fixed cost, x = ?

We know,

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On substituting the values:

3000 = \frac{x}{5} \\\\x = 15000

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Southern pine lumber is visually inspected and placed into categories like "Select Structural," "No. 1," and "No. 2." These cate
mafiozo [28]

Answer:

<h2>The answer in this case would be option A. given in the answer choices or Grading.</h2>

Explanation:

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Teresa Carleo, the owner of Plant Fantasies, believes she is a good communicator, but sometimes employees do not seem to underst
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In the given case, the employees of Teresa did not understand the message and state that they do. Therefore, the employees might be acting carelessly or have some other perception about their boss.

They could have a perception that asking too much questions might affect their image in the eyes of boss.

Hence from the above we can conclude that the correct option is B.

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Hi-Tek is a young start-up company that is currently retaining all of its earnings. The company plans to pay a $2 per share divi
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Present Value of future dividends at year 6:

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= \frac{2}{0.160 - 0.022}

= \frac{2}{0.138}

= $14.49

Present value of dividends (Now):

= Present Value of future dividends at year 6 × (1 + Required return)^{-6}

= $14.49 × (1 + 0.16)^{-6}

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Answer: The answers are:

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B) Price or PV = <u>$258,881.</u>

C) Price or PV = <u>$177,399.</u>

<u></u>

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