MPI Incorporated has $6 billion in assets, and its tax rate is 35%. Its basic earning power
Question:
MPI Incorporated has $6 billion in assets, and its tax rate is 35%. Its basic earning power (BEP) ratio is 11%, and its return on assets (ROA) is 6%. What is MPI’s times-interest-earned (TIE) ratio?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 77% (9 reviews)
TA 6000000000 T 35 EBITTA 11 ROA 6 TIE EBIT6000000000 ...View the full answer
Answered By
Ankur Gupta
I have a degree in finance from a well-renowned university and I have been working in the financial industry for over 10 years now. I have a lot of experience in financial management, and I have been teaching financial management courses at the university level for the past 5 years. I am extremely passionate about helping students learn and understand financial management, and I firmly believe that I have the necessary skills and knowledge to effectively tutor students in this subject.
4.80+
2+ Reviews
10+ Question Solved
Related Book For
Fundamentals of Financial Management
ISBN: 978-1305635937
Concise 9th Edition
Authors: Eugene F. Brigham
Question Posted:
Students also viewed these Finance questions
-
Thomson Trucking has $16 billion in assets, and its tax rate is 40%. Its basic earning power (BEP) ratio is 10%, and its return on assets (ROA) is 5%. What is its times-interest-earned (TIE) ratio?
-
Maple Leaf Printing has $5 billion in assets, and its tax rate is 30%. Its basic earning power (BEP) ratio is 10%, and its return on assets (ROA) is 5%. What is Maple Leaf Printing's times-...
-
Graser Trucking has $12 billion in assets, and its tax rate is 40%. Its basic earning power (BEP) ratio is 15%, and its return on assets (ROA) is 5%. What is its times-interest-earned (TIE) ratio?
-
The United Arab Emirates (UAE) is unique in that expatriates constitute more than 80 per cent of the population. As the country continues to grow and accept foreigners at an astounding pace, Emiratis...
-
What is a slotting allowance?
-
Define the term management, and identify at least five of the eleven managerial skills in Wilsons profile of effective managers.
-
Should regulators of utilities that have been privatised into several separate companies permit (a) horizontal mergers (within the industry); (b) vertical mergers; (c) mergers with firms in other...
-
Reread the Self Competency feature entitled Reflections on Conflict Avoiding Managers. Think of a manager you have worked for (or currently work for). What patterns of conflict-handling styles were...
-
The Tablet Store recently opened to sell iPads and other tablet computing devices. It purchases its tablets directly from the manufacturers (e.g., Apple, Samsung, and Dell). To order tablets, a...
-
The 9 companies are drawn from the following 9 different industries: Liquor producer and distributor Discount airline Commercial bank (items fitted into the same categories as the non-financial...
-
Commonwealth Construction (CC) needs $3 million of assets to get started, and it expects to have a basic earning power ratio of 35%. CC will own no securities, so all of its income will be operating...
-
The Stewart Company has $2,392,500 in current assets and $1,076,625 in current liabilities. Its initial inventory level is $526,350, and it will raise funds as additional notes payable and use them...
-
No searches based on probable cause are violations of Fourth Amendment rights. Some warrantless searches are violations of Fourth Amendment rights. Therefore, some warrantless searches are not...
-
A company's rent increases are to be based on CPI increases as published in the BLS data tables.The company's current rent is $15.00 per square foot per year on a 3,000 square foot space.Rent will...
-
we showed that an LTI system is stable if its impulse response {h[n]}n. is absolutely summable, i.e. if Enez h[n]
-
Calculate the price of Chico Company's stock today, to the nearest cent, if after one year it will have a dividend of $1.04 and then grow at a rate of 11% to a second dividend at t = 2. Thereafter,...
-
If two forces F and F act on an object of mass m to accelerate the object to the -x direction, which of the following figures represent the correct FBD? y F2 X c) mg F2 E UN N F UN F y X4 y b) F2 IN...
-
Consider the system of Figure P2a, a. Determine a nonlinear state model for the system with x=y and x = 1 R(s) *Q (%) Fos Figure P2a b. Evaluate equilibrium with = 0, and determine a linearized model...
-
For the JMC, where does the munitions supply chain start and where does it end?
-
The Thomas Corporation was organized on Jan. 1, 2020. On Dec. 31, 2021, the corporation lost most of its inventory in a warehouse fire before the year-end count of inventory was to take place. just...
-
a. It is now January 1. You plan to make 5 deposits of $100 each, one every 6 months, with the first payment being made today. If the bank pays a nominal interest rate of 12 percent but uses...
-
Anne Lockwood, manager of Oaks Mall Jewelry, wants to sell on credit, giving customers 3 months in which to pay. However, Anne will have to borrow from her bank to carry the accounts payable. The...
-
Assume that your father is now 50 years old, that he plans to retire in 10 years, and that he expects to live for 25 years after he retires, that is, until he is 85. He wants a fixed retirement...
-
Esther and Moses got engaged during December 2020 are happily anticipating their upcoming nuptials in December 2021. One of their friends informed them that they could choose the type of matrimonial...
-
Computer Assisted Audit Tools and Techniques: Imagine you're working as an auditor, and your assignment involves using computer - assisted audit tools to analyze a substantial dataset of financial...
-
Generate a set of 5 equidistant points within [-1 1] from the function 1+25 b) Plot the resulting function along with the data points on the same graph. Employ MATLAB's spline function to interpolate...
Study smarter with the SolutionInn App