Question: please help i am stuck on homework due tonight, its a 4 part question Question 26 2 pts What is the Times Interest Earned Ratio?




Question 26 2 pts What is the Times Interest Earned Ratio? Measures the extent to which earnings can decline without defaulting on debt service Measures a company's success in using its assets to earn a profit O Measures a corporation's profitability by revealing how much profit a company generates with the money shareholders have invested Indicates how a firm finances its capital with regard to amount of debt. Indicates earnings attributable to each share of stock antion 27 2 pts Question 28 2 pts Mr. Smith wants to buy a new car that will cost $18,000. He will make a down payment in the amount of $8,000. He would like to borrow the remainder from a bank at an interest rate of 9% compounded monthly. He agrees to pay off the loan monthly for a period of two years. Select the correct answer for the following questions: What is the amount of the monthly payment A? O A = $12,500(A/F, 9%, 2)/12 O A = $10,000(A/F, 0.75%, 24) O A - $10,000(A/P, 9%, 12) O A - $10,000(A/P, 0.75%, 24) Mr. Smith wants to buy a new car that will cost $18,000. He will make a down payment in the amount of $8,000. He would like to borrow the remainder from a bank at an interest rate of 9% compounded monthly. He agrees to pay off the loan monthly for a period of two years. Mr. Smith has made 12 payments and wants to figure out the balance remaining immediately after the 12th payment. What is that balance? OB = A(P/A, 9%, 1/12 OB - 10,000 - 12A OB = A(P/A, 0.75%, 12) OB = 12A T R C Clay Harden borrowed $25,000 from a bank at an interest rate of 9% compounded monthly. The loan will be repaid in 36 equal monthly installments over three years. What is the required monthly payment? O $795 O $694 O Cannot be determined. $908 Clay Harden borrowed $25,000 from a bank at an interest rate of 9% compounded monthly. The loan will be repaid in 36 equal monthly installments over three years. Immediately after his 20th payment, Clay desires to pay the remainder of the loan in a single payment. Compute the total amount he must pay. O $11,944,33 Cannot be determined. O $10,840.00 O $11,328.00
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