6. Atlas Co sales last year were $4,350, its operating costs were $3,625,and its interest charges were $125. What was the firm's times-interest-earned (TIE) ratio?O a) 4.7O b) 4.9O c) 5.2O d) 5.8O e) None of the above 5. Rami now has $8000. How much would he have after 8 years if heleaves it invested at 8% with annual compounding? *a) $9,560O b) S7,560O c) $12,555O d) S14,807O e) None of the above

earnings before interest and tax = (sales - operating cost)

6. Atlas Co sales last year were $4,350, its operating costs were $3,625, and its interest charges were $125. What was the firm's times-interest- earned (TIE) ratio? О а) 4.7 O b) 4.9 O c) 5.2 O d) 5.8 e) None of the above

6. Atlas Co sales last year were $4,350, its operating costs were $3,625, and its interest charges were $125. What was the firm's times-interest- earned (TIE) ratio? О а) 4.7 O b) 4.9 O c) 5.2 O d) 5.8 e) None of the above

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter4: Time Value Of Money

Section: Chapter Questions

Problem 6PROB

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Question

6. Atlas Co sales last year were $4,350, its operating costs were $3,625,
and its interest charges were $125. What was the firm's times-interest-
earned (TIE) ratio?
O a) 4.7
O b) 4.9
O c) 5.2
O d) 5.8
O e) None of the above

5. Rami now has $8000. How much would he have after 8 years if he
leaves it invested at 8% with annual compounding? *
a) $9,560
O b) S7,560
O c) $12,555
O d) S14,807
O e) None of the above

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