A business has an EBIT of $300,000 and a depreciation expense of $12,000. Fixed charges total $44,000.

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

Question:

A business has an EBIT of $300,000 and a depreciation expense of $12,000. Fixed charges total $44,000. The interest expense amounts to $7,000. What is the firm's cash coverage ratio?

Related Book For answer-question

Financial Management Theory And Practice

ISBN: 978-0176583057

3rd Canadian Edition

Authors: Eugene Brigham, Michael Ehrhardt, Jerome Gessaroli, Richard Nason

See More Books

Posted Date: Jun 09, 2023 08:01 AM

See More Questions

The following additional information is available for the Dr. Ivan and Irene Incisor family from Chapters 1-5. Ivan's grandfather died and left a portfolio of municipal bonds. In 2012, they pay Ivan...
An industrial company is currently rated A-. It has an EBIT of $500 million and an interest expense of $75 million. Suppose the median interest coverage ratio for an A- rated industrial company is...
A firm has an EBIT of $63,700, depreciation expense of $2,100, interest expense of $700, and taxes of $13,100. The EBITDA multiple is 7.6. What is the value of the firm?
You are given two planes in parametric form, x1 x2 1 x3 where x1, x2, 3, , 2, 1,42 R. Let I be the line of intersection of II and II2. a. Find vectors n and no that are normals to II and II 2 must...
During its execution, a transaction passes through several states, until it finally commits or aborts. List all possible sequences of states through which a transaction may pass. Explain why each...
The absorber surface of a solar collector is made of aluminum coated with black chrome ( s = 0.87 and = 0.09). Solar radiation is incident on the surface at a rate of 600 W/m 2 . The air and the...
Add the concept of path cost to your implementation. Implement A*. Does it perform much better than depth-first or breadth-first search? How well does it do with the large tree you built in Exercise...
How is building a brand in a business-to-business context different from doing so in the consumer market?
A recipe for Banana Pie calls for 5 cups of peeled, diced bananas. Bananas are purchased for $0.75 per pound and the yield percent is 68%. 1 cup of peeled, diced bananas weigh 6 ounces. How much will...
Telemark-Kjemi AS manufactures an industrial solvent in two departments mixing and cooking. This question focuses on the Cooking Department. During June 2022, 90 tonnes of solvent were completed and...
How are these two amino acids attached together? Carboxyl Peptide bond Amino group group H Dehydration reaction H. H H. N- N- -N- H. R. HR H,0 Amino acid Amino acid Dipeptide O hydrokyl group to a...
Solve log2x+log2(-4x+12)=3.
Simplify the expression. 5x8. (-8x9) 5x8 (-8x)=(Simplify your answer. Use positive exponents only.)
If f (x) = x+5x and g(x) = x-7x, find and simplify f (x) g(x).
If f(x) = 3x-5x3, find f'(-2)
Combine all like terms to simplify the expression. x+4x+3+7x
A five-year $10,000 bond with a 10% coupon rate costs $10,000 and pays its holder $500 every six months for five years, with a final additional payment of $10,000 made at the end of those ten pay-...
A statistical study shows that the fraction of television sets of a certain brand that are still in service after x years is given by f (x) = e-0.15x. (a) What fraction of the sets are still in...
A company's stock price is $12 per share, and it has $7 million in total assets. Its balance sheet shows $1 million in current liabilities, $2.5 million in long-term debt, and $3.5 million in common...
You just purchased a bond that matures in 12 years. The bond has a face value of $1,000 and has an 6% annual coupon. The bond has a current yield of 6.4%. What is the bond's yield to maturity?
Griswall Industries sells on terms of 2/10, net 30. Total sales for the year are $1,460,000. Thirty percent of the customers pay on the 10th day and take discounts; the other 70% pay, on average, 40...
For the conditions of Sample Problem 5/17, determine the angular acceleration of $A C$ and the acceleration of $A$ relative to the rotating slot in $\operatorname{arm} O D$. Problem 5/17, The...
Aircraft $B$ has a constant speed of $150 \mathrm{~m} / \mathrm{s}$ as it passes the bottom of a circular loop of 400-m radius. Aircraft $A$ flying horizontally in the plane of the loop passes...
Examples of random variables used in this chapter included (a) the sex of the next person you meet, (b) the number of times a wireless network fails, (c) the time it takes to commute to school, (d)...

A business has an EBIT of $300,000 and a depreciation expense of $12,000. Fixed charges total $44,000.

Question:

Expert Answer:

The cash coverage ratio is a measure of a companys ability to cover its fixed ch... View the full answer

Financial Management Theory And Practice

Students also viewed these finance questions