Question: The W . C . Pruett Corp. has $ 5 0 0 , 0 0 0 of interest - bearing debt outstanding, and it pays

The W.C. Pruett Corp. has $500,000 of interest-bearing debt outstanding, and it pays an annual interest rate of 8% on this debt. Its annual sales are $4 million, its average tax rate is 25%, and its profit margin is 4%. What is W.C. Pruett's times-interest-earned (TIE) ratio?(8)

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

Q:

DuPONT AND NET INCOME Precious Metal Mining has $12 million in sales, its ROE is 15%, and its total assets turnover is 2.5x. Common equity on the firm's balance sheet is 70% of its total assets. What...

Q:

The Ferrari Legacy Ferrari was the namesake of Enzo Ferrari. An automotive engineer his entire life, Enzo worked with Alfa Romeo for many years, performing every possible function including lathe...

Q:

The Ferrari Legacy Ferrari was the namesake of Enzo Ferrari. An automotive engineer his entire life, Enzo worked with Alfa Romeo for many years, performing every possible function including lathe...

Q:

just fill in the yellow parts thank u Date Fled: Feb 19,2020 Period End: Dec 31, 2019 EL LILLY AND COMPANY AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (Dollars in millions, shes in thousands) in the...

Q:

TIE AND ROIC RATIOS The W.C. Pruett Corp. has $200,000 of interest bearing debt outstanding, and it pays an annual interest rote of 8%. In addition, it has $600,000 of cornmen stock on its bilance...

Q:

Marriott Corp / Project Chariot Case: Marriott Corporation (A) (HBS Case No. 394-085) Supplement: Marriott Corporation Excel Work Book (HBS Courseware No. 307-703) Marriott Corporation Based on No...

Q:

Can you assist me with this finance questions? 6-8 6-11 6-14. The other one is 8-4. Thank you PROBLEM 6-1 Cash provided by operations (CPBO) differs from free cash flow for the following reasons: 1....

Q:

need answer asap Taunton Corp. Suppose you have been hired as a financial consultant to Taunton Corp., a large, publicly traded firm that is the market share leader in radon detection systems (RDS)....

Q:

I need assistance with this finance question 8-1. Thank you PROBLEM 8-1 Given Sale price Square footage Selling price/sq ft Time on the market $ $ Comp #1 240,000.00 $ 2,240 107.14 $ 61 days Solution...

Q:

Below, pages 1-13 is an article that needs to be read through. The very last picture is a screenshot of questions/instructions that need to be answered based off of reading the article (questions 1-4...

Q:

A. Fill in the blank by choosing the suitable answers stated below. Variable cost L iii. iv. Sunk cost ii. As an alternative to the old sewing machine, Beauty Dress Enterprise will rent a new...

Q:

Direct materiais variances Bellingham Company produces a product that requires 2.3 standard pounds per unit. The standard price is $3.55 per pound, 15,800 units used 35,500 pounds, which were...

Q:

2. (LO1) Complete the following sentence for each of these investors: 1. A buyer of call options 2. A buyer of put options 3. A seller (writer) of call options 4. A seller (writer) of put options The...

Q:

A company is preparing completing their Cash Budget. The following data has been prepared for cash receipts and payments. January February March Cash receipts $1,061,200 $1,182,400 $1,091,700 Cash...