aABE Co. has a times interest earned ratio of 3.2. How is this value interpreted? What is

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

Question:

aABE Co. has a times interest earned ratio of 3.2. How is this value interpreted? What is (are) a factor which requires caution when using ratios to evaluate firm performance?

Related Book For answer-question

Financial Reporting and Analysis Using Financial Accounting Information

ISBN: 978-1439080603

12th Edition

Authors: Charles H Gibson

See More Books

Posted Date: Feb 19, 2024 12:19 AM

See More Questions

Multiple-choice questions: a. Which of the following ratios can be used as a guide to a firms ability to carry debt from an income perspective? 1. Debt ratio 2. Debt to tangible net worth 3....
Canadian media and communications giant Rogers Communications Inc. is a publicly listed firm. Founded by Edward Rogers in 1960 with headquarters in Toronto, Ontario, the firm is now worth billions of...
Below are ratios with explanations introduced in this chapter. See Appendix B for additional ratios . Financial Leverage is similar to the debt ratio, in the sense that the more debt a company has,...
Start with the partial model in the file Ch19 P08 Build a Model.xls on the textbooks Web site. Maggies Magazines (MM) has straight nonconvertible bond that currently yield 9%. MMs stock sells for $22...
In what ways will the job of a top manager typically differ from that of a first-line manager?
What is the popular definition of culture? Where does culture come from?
National Life Expectancies. We continue the analysis begun in Exercises 1.7and 2.22 Now fit a regression model on LIFEEXP using three explananatural logarithmic transform of PRIVATEHEALTH). a....
The supply curve for product X is given by Qsx = - 520 + 20Px. a. Find the inverse supply curve. b. How much surplus do producers receive when Qx = 400? When Qx = 1,200?
The following year-end information is taken from the December 31 adjusted trial balance and other records of Leone Company. Advertising expense Depreciation expense-Office equipment $ 28,750 7,250...
Consider a stock with a volatility of its logarithm of = 25%. The current price of the stock is $53. The stock pays no dividends. A European call option on this stock has an expiration date 6 months...
What sophisticated strategies can be employed to proactively anticipate and mitigate the long-term impacts of stress and adversity, cultivating resilience as a strategic imperative for sustainable...
For the next two weeks you will be acting as external communication consultants for Starbucks. In your group you will discuss effective team-building strategies using the textbook as a guide and...
MARKETING GOALS & OBJECTIVES In detail explain, what are the Year 1 and Year 3 marketing goals and SMART objectives that support the Business Goals & SMART objectives? Consider what you are trying to...
What role do leverage points play in the transformation of chaos into strategic opportunity in health care?
Read " What do Employers Want" on pages 4-7 in Job Smart: Tips for Staying Employed. Then, read through the scenario below. Next, listen to the audio clip on page 61 of In The Workplace: An...
74. 1210 =? 1.
Based on the scenario described below, generate all possible association rules with values for confidence, support (for dependent), and lift. Submit your solutions in a Word document (name it...
Sampson Company's balance sheets for December 31, 2009 and 2008, as well as the income statement for the year ended December 31, 2009, are shown next. Other data: 1. Dividends paid in cash during...
XYZ Corporation reported earnings per share of $2.00 in 2008. In 2009, XYZ Corporation reported earnings per share of $1.50. On July 1, 2009, and December 31, 2009, 2-for-1 stock splits were...
J. Shaffer Company has an ending inventory of $360,500 and a cost of goods sold for the year of $2,100,000. It has used LIFO inventory for a number of years because of persistent inflation. Required...
A trap-jaw ant has mandibles that can snap shut with some force, as you might expect from its name. The formidable snap is good for more than capturing prey. When an ant snaps its jaws against the...
Cress Trust owns houses in Marion County, for whom Rainbow Realty Group, Inc., sells, rents, and manages. The same person serves as Rainbows president and Cresss corporate trustee. Cress offers four...
Genevieve and William Timmons began their tenancy of a ground-floor apartment at Cobblestone Square in September 2011. Kingsley-Johnston, Inc., is a property management company responsible for...

aABE Co. has a times interest earned ratio of 3.2. How is this value interpreted? What is

Question:

Expert Answer:

The times interest earned ratio TIE measures a companys ability to cover its interest expenses with its earnings before interest and taxes EBIT A TIE ... View the full answer

Financial Reporting and Analysis Using Financial Accounting Information

Students also viewed these accounting questions