Why will the fixed-charge-coverage ratio always be equal to or less than times interest earned?

Question:

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Fundamentals of Investment Management

ISBN: 978-0078034626

10th edition

Authors: Geoffrey Hirt, Stanley Block

See More Books

Question Posted: Sep 21, 2015 05:25 AM

See More Questions

What might a high dividend-payout ratio suggest to an analyst about a companys growth prospects?
In computing return on assets, how does the age of the assets influence the interpretation of the values?
The Multi-Corporation has three different operating divisions. Financial information for each is as follows: a. Which division provides the highest operating margin? b. Which division provides the...
Problem 5-47 Amortizing Loans and Inflation (LO3) Suppose you take out a $108,000, 20-year mortgage loan to buy a condo. The interest rate on the loan is 5%. To keep things simple, we will assume you...
Beginning accounts receivable were $32,350. All sales were on account and totaled $286,480. Cash collected from customers totaled $276,750. Required: Calculate the ending accounts receivable balance.
Do men and women have different leadership styles? What are the implications of these differences for organizations?
Describe the function of each branch of government.
In Figure where V23 = 3.00V1, n moles of a diatomic ideal gas are taken through the cycle with the molecules rotating but not oscillating. What are? (a) p2/p1 (b) p3/p1 and (c) T3/T1 For path 1 ?? 2,...
There are specific laws that govern aspects of marketing. Please discuss one of those laws and how it might apply to a recent example in the media. What is the law or regulation? What is the case or...
What type of data does Zipcar use to make decisions on behalf of its customers? Its operations? How does the data used to make customer decisions differ from the data used to make decisions related...
If D1 = $3.00, Ke = 10 percent, and g = 12 percent, can Formula 75 be used to find P0? Explain the reasoning behind your answer.
Explain the probable impact of replacement-cost accounting on the ratios of return on assets, debt to total assets, and times interest earned for a firm that has substantial old fixed assets.
Apparent Weight, A 550-N physics student stands on a bathroom scale in an 850-kg (including the student) elevator that is supported by a cable. As the elevator stands moving, the scale reads 450 N....
What are the implications of transformational leadership for talent development and succession planning, particularly in cultivating a pipeline of future leaders capable of driving organizational...
How does the application of transformational leadership theories facilitate organizational adaptation and strategic change amidst dynamic market environments?
What is meant by externalities and public goods? How does a market economy address externalities and public goods? What role, if any, should government have in addressing externalities and public...
The article reviews several small-scale studies regarding the effects of promoting patient access to medical records. The authors of the article conclude that allowing patient access and request for...
How does the concept of servant leadership intersect with transformational leadership principles, and what synergies exist between these approaches in driving organizational excellence and societal...
DeJohn Company, which began operations at the beginning of 2023, produces various products on a contract basis. Each contract generates a gross profit of $80,000. Some of DeJohns contracts provide...
Q:1 Take any product or service offered in Pakistan and apply all determinents of customer Perceived value ?
On December 31, 2011, Memphis Co. had the following available-for-sale investment disclosure within the Current Assets section of the balance sheet: Available-for-sale investments (at...
At the market close on February 19, 2010, McDonalds Corporation had a closing stock price of $64.74. In addition, McDonalds Corporation had a dividend per share of $2.05 over the previous year....
At the market close on February 19, 2010, McDonalds Corporation had a closing stock price of $64.74. In addition, McDonalds Corporation had a dividend per share of $2.05 over the previous year....
A single ion channel is selectively permeable to K+ and has a resistance of 2.30 GQ2. During an experiment, the channel is open for approximately 3.00 ms while the voltage across the channel is...
Standard deviation calculations are the following: HT 20%, COLL 11.2%, OM 15.2%, USR 18.8%, and T-Bills 0%. Which of the following has the widest dispersion around the expected return; which is most...
( a ) Journalize the annual adjusting entries that were made. Omit explanations. ( b ) Prepare an income statement and a statement of retained earnings for the year ending December 3 1 , 2 0 2 2 ,...

Why will the fixed-charge-coverage ratio always be equal to or less than times interest earned?

Question:

Step by Step Answer:

Because the fixed charge coverage ratio covers all types of fi...View the full answer

Fundamentals of Investment Management

Students also viewed these Accounting questions