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Inessa [10]
2 years ago
14

A firm has sales of $215,600, costs of $124,800, interest paid of $3,600, and depreciation of $11,400. the tax rate is 34 percen

t. what is the value of the cash coverage ratio?
Business
1 answer:
Tju [1.3M]2 years ago
6 0

Cash Coverage ratio indicates if a firm has enough cash to pay of its interest expenses. The ideal ratio to be maintained by a firm is 1:1. This can be given by the following formula:

Cash Coverage Ratio=\frac{Earnings before Interest and Tax+Depreciation }{Interest Expense}

Cash Coverage Ratio=\frac{215600-124800+11400}{3600}

Cash Coverage Ratio=28.38

Assumption: Cost includes Depreciation, thus depreciation is added back, To find Cash Profits before Interest and Taxes.


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​(Annuity payments) Calvin Johnson has a 5000 debt balance on his Visa card that charges 12.9 percent APR compounded monthly. In
olya-2409 [2.1K]

Answer:

41.49 approx 42 months

Explanation:

To calculate the number of months, we use the formula for loan

p = r(pv) / 1 - (1+r)-n

make n subject of the formula

p ( 1 - ( 1+r) ^-n) = r(pv)

p - p (1+r)^-n = r(pv)

p (1+r)^-n = p-r(pv)

(1+r)^-n = (p-r(pv)) / p

( 1+r)^n = p / (p-r(pv))

n In( 1+r) = In (p / (p-r(pv))

n = In ( p/ ( p - r(pv)) / In ( 1 +r)

n is the number of months, p is the payment per months

pv is the present value of 5000

substitute the values given into the equation

n = (In ( 150 / (150 - ( 0.129 / 12 × 5000)) / ( In ( 1 + ( 0.129 / 12) = 41.49 approx 42 months

8 0
2 years ago
Read 2 more answers
Many tire centers and new car dealers offer to fill tires with nitrogen instead of compressed air, often at a significantly incr
STatiana [176]

Answer and Explanation:

a) the advantage if using Nitrogen is that pure nitrogen does not leak out of tires as fast as oxygen do. Molecules of Nitrogen are much larger that those of Oxygen so nitrogen filled tires will remain inflates longer than air filled tires.

b) it is consistent with the ideal gas law (PV= nRT). Volume is inversely proportional to pressure and directly proportional to the temperature which mean that every 10 degree change in temperature will result in 1 psi change in tire-inflation pressure.

c) Yes there is another chemical reason. Air contains moisture which can build up within and corrode the wheels and tire pressure monitoring system resulting in tire rot from within but Nitrogen gas is much drier and allows a more steady pressure inside the tire.

d) No I will not pay extra for nitrogen filled tires because there's no huge difference between nitrogen and air filled tires. Nitrogen contains only about 93-95% nitrogen and the rest air ,while ordinary air-filled tire contains 78% nitrogen and the rest air. Besides nitrogen gas do not protect nor repairs faulty tires, you still have to check your tires from time to time and ordinary air is much cheaper than nitrogen and in some regions free. So I think its just a marketing strategy and do not have much use.

5 0
2 years ago
Net interest margin—often referred to as spread—is the difference between the rate banks pay on deposits and the rate they charg
Minchanka [31]

Answer:

(a) P(X\:>\:5.40)=0.9938

(b) P(X\:

(c) X=4.975 percent

Explanation:

(a) Find the z-value that corresponds to 5.40 percent

.Z=\frac{X-\mu}{\sigma}

Z=\frac{5.40-4.15}{0.5}

Z=\frac{1.25}{0.5}=2.5

Hence the net interest margin of 5.40 percent is 2.5 standard deviation above the mean.

The area to the left of 2.5 from the standard normal distribution table is 0.9938.The probability that a randomly selected U.S. bank will have a net interest margin that exceeds 5.40 percent is 1-0.9938=0.0062

(b) The z-value that corresponds to 4.40 percent is Z=\frac{4.40-4.15}{0.5}=0.5The net interest margin of 4.40 percent is 0.5 standard deviation above the mean.

Using the normal distribution table, the area under the curve to the left of 0.5 is 0.6915

Therefore the probability that a randomly selected U.S. bank will have a net interest margin less than 4.40 percent is 0.6915

(c)  The z-value that corresponds to 95% which is 1.65

We substitute the 1.65 into the formula and solve for X.1.65=\frac{X-4.15}{0.5}

1.65\times 0.5=X-4.150.825=X-4.15

0.825+4.15=X

4.975=X

A bank that wants its net interest margin to be less than the net interest margins of 95 percent of all U.S. banks should set its net interest margin to 4.975 percent.

6 0
2 years ago
Discuss the optimal method for procuring inputs that have well-defined and measurable quality specifications and require highly
son4ous [18]

Answer:

The optimal method for procuring inputs that have well-defined and measurable quality specifications and require highly specialized investments is the contract.

Explanation:

The contract is signed between the seller and the buyer, and establishes formal and legal terms, and agreed responsabilities. The primary advantages are that firms and buyers are allowed to focus in producing and getting what they need as contracts are used for tangible goods and for rendered services, reducing the opportunistic behaviour and underinvestment.

The CONASUPO, mexican government office, signed a contract with the mexican ranch owners to get all their milk production at low prices to feed the thousands of low income families.

3 0
2 years ago
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Pinetops Resorts, an American company, sells the rights to other hospitality companies globally to open resorts with the Pinetop
brilliants [131]

Answer: B) Franchising

Explanation:

 The franchising is the term which is used for providing the license to the other business organization so that they can access the other brand name and promoting the products and the services in the market.

The franchising is the term that helps in providing the other brand name in the form of trade-mark name.

According to the question, the Pine-tops resort is one of the america organization tat basically sell the various types of products to the other firms globally. Therefore, pine-tops is basically engaging in the franchising process.    

5 0
2 years ago
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