MPI Incorporated has $4 billion in assets, and its tax rate is 35%. Its basic earning...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
MPI Incorporated has $4 billion in assets, and its tax rate is 35%. Its basic earning power (BEP) ratio is 12%, and its return on assets (ROA) is 5%. The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the question below. What is MPI's times-interest-earned (TIE) ratio? Round your answer to two decimal places. 4 Tax Rate Basic Earning Power (BEP) Ratio 6 Return on Assets (ROA) 7 8 9 10 Net Income 456 EBIT 11 12 Partial Income Statement: 13 EBIT 14 Interest 15 Earnings Before Taxes 16 Taxes 17 Net Income 18 19 TIE Ratio 20 21 22 23 24 25 26 27 28 35.00% 12.00% 5.00% $0.00 Formulas #N/A #N/A #N/A #N/A #N/A #N/A #N/A MPI Incorporated has $4 billion in assets, and its tax rate is 35%. Its basic earning power (BEP) ratio is 12%, and its return on assets (ROA) is 5%. The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the question below. What is MPI's times-interest-earned (TIE) ratio? Round your answer to two decimal places. 4 Tax Rate Basic Earning Power (BEP) Ratio 6 Return on Assets (ROA) 7 8 9 10 Net Income 456 EBIT 11 12 Partial Income Statement: 13 EBIT 14 Interest 15 Earnings Before Taxes 16 Taxes 17 Net Income 18 19 TIE Ratio 20 21 22 23 24 25 26 27 28 35.00% 12.00% 5.00% $0.00 Formulas #N/A #N/A #N/A #N/A #N/A #N/A #N/A
Expert Answer:
Answer rating: 100% (QA)
TIE ratioEBITInterest expesnes Basic Earnings Power ratioEBITTotal assets EB... View the full answer
Related Book For
Fundamentals of Financial Management
ISBN: 978-0324664553
Concise 6th Edition
Authors: Eugene F. Brigham, Joel F. Houston
Posted Date:
Students also viewed these finance questions
-
Evans Inc. manufactures pillows. The 2015 operating budget is based on production of 25,000 pillows with 0.75 machine-hour allowed per pillow. Budgeted variable overhead per hour was $25. Actual...
-
You are an analyst of the FHA program. The program has an upfront insurance premium of 1.75 percent and an annual premium of .85 percent. If a borrower gets a 30-year, 4 percent, fixed-rate mortgage,...
-
Excel Online Structured Activity: Personal taxes Mary Jarvis is a single individual who is working on filing her tax return for the previous year. She has assembled the following relevant...
-
Assume you are given the following abbreviated financial statements: On the basis of this information, calculate as many liquidity, activity, leverage, profitability, and common stock measures as you...
-
Ordering the Classifications on a Typical Balance Sheet Following is a list of classifications on the balance sheet. Number them in the order in which they normally appear on a balance sheet. No....
-
Jefferson Animal Rescue is a private not-for-profit clinic and shelter for abandoned domesticated animals, chiefly dogs and cats. At the end of 2019, the organization had the following account...
-
Yahoo is Fined $117.5 Million for Worst Data Hacks in History 1. Why do you think Yahoo was targeted for these data breaches? 2. Why did Yahoo keep the breaches from the public eye? How did their...
-
Cardinals Corporation purchased a computer on December 31, 2013, for $105,000, paying $30,000 down and agreeing to pay the balance in five equal installments of $15,000 payable each December 31...
-
Ahrends Corporation makes 55,000 units per year of a part it uses in the products it manufactures. The unit product cost of this part is computed as follows: Direct materials Direct labor Variable...
-
Use the template for the ABC Corp. valuation in section 2.7 to value Cisco stock. Assume that the weighted average cost of capital for Cisco is 12.6%, the growth rate for years 15 is 4%, and that the...
-
6. (6 points) A company has a network address of 140.192.1.64 with a subnet mask of 255.255.255.192. The company wants to create subnetworks that would contain 10 hosts each. The company wants to...
-
Theme: Meaning of leadership Find at least two external sources related to your theme upon which you can draw for your explanation. Then make a post with the following: Explain the theme Cite sources...
-
I. Find the largest possible domain. X+3 A. f(x)= x-3x-28 B. f(x)=16-x 15 c. f(x)=x - 4x D. f(x)= 5x+2 X +3
-
Solve for f(x) f(x) = f'(x) = 20x + x > 0, f(1) = 2
-
A survey of 324 people asked what their favorite food was. The results are shown below. Pizza Burgers Fried Chicken Other Total Less than 18 18 and older Total 60 45 23 If we randomly select a person...
-
Bob, a customer service manager at a call center, prides himself on being able to "read" people. He says he can tell whether someone will make a good employee as soon as he meets them and "sizes"...
-
that is correct or not Explain? > > P4_FY8314_Ambulance scenario_0 JRE System Library [JavaSE-17] src edu.metrostate.ics372.aannnn.p4 AmbulanceDispatcher.java AmbulanceDispatcher Ambulance > >...
-
suppose a nickel-contaminated soil 15 cm deep contained 800 mg/kg Ni, Vegetation was planted to remove the nickel by phytoremediation. The above-ground plant parts average 1% Ni on a dry-weight bas...
-
A life insurance policy is a financial asset, with the premiums paid representing the investments cost. a. How would you calculate the expected return on a 1-year life insurance policy? b. Suppose...
-
Whats the difference between a call for sinking fund purposes and a refunding call?
-
How is the value of any asset whose value is based on expected future cash flows determined? Discuss.
-
The properties of water and steam become identical at (a) 0.1 bar (b) 1 bar (c) \(100 \mathrm{bar}\) (d) 212.2 bar.
-
Steam from an engine exhaust at 1.25 bar flows steadily through an electric calorimeter and comes out at \(1 \mathrm{bar}, 130^{\circ} \mathrm{C}\). The calorimeter has two \(\mathrm{kW}\) heaters...
-
In thermodynamic analysis, a pure substance is that which (a) Consists of only a single chemical species (b) has no dissolved impurities (c) may have a number of chemical species but the composition...
Study smarter with the SolutionInn App