What advantage does the fixed charge coverage ratio offer over simply using times interest earned?

Q: ace value bond carrying a 4.83 % coupon with 25 years until maturity is issued . The bond has a sink...

A: Annual cost of bond is the sinking fund payment and the coupon payment to be paid on the bond. The  ...

Q: Refuse, Inc. just paid a dividend of $2. Refuse expects dividends to grow at 4% indefinitely The etu...

A: Share price Share price is the current market price of the share. It is the price of the share at wh...

Q: Why is the NPV preferred over the IRR?

A: Net Present Value is a method of finding the profitability of a project by discounting future cash f...

Q: to deposits of $80 a month for 18 years, then they are offering a guaranteed rate of 4.5% interest c...

A: Future Value of Annuity: It is the future worth of the present annuity stream cash flows. It is com...

Q: Laurel Enterprises expects earnings next year of ​$4.00 per share and has a 40% retention​ rate, whi...

A: A stock (also called equity) is a financial instrument that represents ownership of a portion of a c...

Q: = sinking fund formula, calculate the

A: Payment per month refers to the amount which a borrower should at the end of each month or period to...

Q: Motorhed Inc is currently trading at $8 per share with 2.5 billion shares on issue. It announces a 2...

A: Current price -$8 No of shares – 2.5 billion Total value of shares = 2.5*8 = $20 billion   Right iss...

Q: Bond P is a premium bond with a coupon of 7.8 percent, a YTM of 6.55 percent, and 15 years to maturi...

A: Bonds are the highly secured debt securities for which the company pays interest to the bondholder. ...

Q: Fiscal year is January-December. All values PHP Millions. 2020 2019               Cash & Short Term...

A: Working capital management is defined as the business strategy, which helps in ensuring the company ...

Q: P8-1 Expected Return Given these three economic states, their likelihoods, ane potential returns, co...

A: Expected return is average return considering the different probabilities of different returns.

Q: Valuation of assets.  Using the information provided in the following table, find the value of each ...

A: Here, To Find: Value of each asset =?

Q: The sale of a company rose from $ 60,000 in the month of August to $ 69,000 in the month of Septembe...

A: Concept Seasonal index is a measure of how a particular season through some cycle compares with aver...

Q: 20. Lina's Corp's sales last year were $852,500, its operating costs were $543,750, and its interest...

A: Sales = $852,500 Operating expenses = $543,750 Interest charges = $18,750

Q: How is risk defined and measured? How might the magnitude of the market risk premium impact someone’...

A: In financial terms, the risk is referred to as the possibility that an outcome's actual gains will d...

Q: Cross-Ocean Boats Ltd. is in the 30% tax bracket. It is interested in determining the minimum return...

A: The majority of businesses employ a combination of equity and (debt) loan funding.The rate of return...

Q: listed public entities require engagement quality review is required. This review is c

A: Given listed public entities require engagement quality review ir required.

Q: (the Scream Machine) at a theme park. Alternative A required a $300,000 investment, produced after-t...

A: Future worth analysis is one of the methods used to make a cost benefit analysis of alternative proj...

Q: A rate is made up of claims, retention and profit.  If 80% of a rate is claims, and retention equate...

A: Concept . In the given case , Rate comprises of claims , retention and profit. Rate = claims + reten...

Q: Cross-Ocean Boats Ltd. is in the 30% tax bracket. It is interested in determining the minimum return...

A: Capital structure decisions refer to the arrangement and combination of sources of funds required to...

Q: 4. Compare the alternatives shown below on the basis of a present worth analysis, using an interest ...

A: Present worth is calculated by dividing the net of future cash outflows and inflows by the 1+r facto...

Q: Stock Shares Stock Price $94 8,000 33,000 C 4,600 80,500 81 12 If there are 54,000 shares of the mut...

A: Here,  

Q: Kolby's Korndogs is looking at a new sausage system with an installed cost of $695,000. This cost wi...

A: Installed Cost is $695,000 Life of project is 5 years Initial Investment in net working capital is $...

Q: Seth Fitch owns a small retail ice cream parlor. He is considering expanding the business and has id...

A: Payback period is the period up to which initial cost of the investment is recovered. It is calculat...

Q: Explain why the weighted average cost of capital (WACC) is used in capital budgeting.

A: WACC = multiplying the cost of each capital source (debt and equity) by its relevant weight by marke...

Q: A loan should be fully repaid in 30 monthly installments of Rp3.750.000. If the loan is Rp100.000.00...

A: Flat interest rate is simple interest rate without considering the impact of the compounding and add...

Q: has a callable bond outstanding with a coupon of 10.8 percent, 25 years to maturity, call protection...

A: The return a bondholder will earn if the bond is held until the call date, which occurs before the b...

Q: Bond valuation An investor has two bonds in her portfolio, Bond C and Bond Z. Each bond matures in ...

A: Bond C coupon (C) = 11% of $1000 = $110 Face value for both bonds (F) = $1000 r = 9.2% Let n = Years...

Q: 31. Flyers plc operates public transport services in major cities in the United Kingdom (UK). The co...

A: Capital budgeting decisions are investment appraisal decisions that are taken to attain the profitab...

Q: 18. A man will deposit 200 with a savings bank at the beginning of each 3 months for 9 years. If the...

A: Question 18 pertains to annuity due. Annuity due is that annuity in which payments are made at the b...

Q: Suppose you obtain a 20-year mortgage loan of $193,000 at an annual interest rate of 8.4%. The annua...

A: Given Information in the question:- PV (present value) = $193,000 Rate = 8.4% Time (N) = 20 year Ann...

Q: Your parents have discovered a $1,000 bond at the bottom of their safe-deposit box. The bond was giv...

A: Bond is the debt security that investors uses to reduce the risk and increase stable return from the...

Q: Roberto borrows $7000. The loan is to be repaid in 10 yr at 11% interest compounded annually. How mu...

A: Present value of a future cashflow(F) can be defined as the current amount that should be invested n...

Q: What is the price of Thera Corpn's zero coupon bond with 10 years to maturity? The bond was original...

A: Present Value can be calculated using PV function in excel   PV (rate, nper, pmt, [Fv], [type]) Rat...

Q: On the exercise date, Blue Corporation has a put option for 100 tons of copper at an exercise price ...

A: Put option is a right to sell an underlying security at a predetermined price at a future date.  

Q: You purchased 100 shares in a real estate investment trust for $50 a share. The trust paid the follo...

A: Annualized returns is return earned over the period of single year by holding the investment.

Q: A 5-year project will require an investment of $100 million. This comprises of plant and machinery w...

A: Working Note #1 Calculation of depreciation: Year 1 2 3 4 5 Opening Balance ($) 80000000 600000...

Q: The interest rate in Japan is 1%. The yen to dollar spot exchange rate is ¥100 per dollar and the f...

A: Covered Interest rate parity It provides relationships among  interest rates and exchange rates (spo...

Q: You are a portfolio manager. John Smith, one of your clients, by providing you the following formati...

A: Standard deviation of the returns of a stock The standard deviation of the returns of a stock measur...

Q: Discuss on the key areas to look at when learning and analysing IFrs for smes

A: International Financial Reporting Standards (IFRS) are the set of rules of accounting which are used...

Q: A credit card company offers an annual 2% cash-back rebate on all gasoline purchases. If a family sp...

A: Solution:- Rebate means the discount or cash back offered by the company to its seller.

Q: NoGrowth Corporation currently pays a dividend of $0.44 per​ quarter, and it will continue to pay th...

A: Annual dividend (D) = $0.44 Cost of capital (r) = 15.5%

Q: $10,500 of sales, $4,000 of operating costs other than depreciation, and $4,500 of depreciation. It ...

A: based on the data given in the sum we will calculate the EBIT. 

Q: REGULAR PAYMENT OF SIMPLE ORDINARY ANNUITY Eva obtained a loan fee of Php50,000 for the tuition of h...

A: This is a simple ordinary annuity. This means that the payments are being made at the end of every 6...

Q: current position of

A: A call option is a financial contract that provides the buyer to buy the right but does not provide ...

Q: Emily Dao, 27, just received a promotion at work that increased her annual salary to $37,000. She is...

A: Concept. Present value is calculated by formula Pv = Fv ÷[ ( 1+ r) n ] Where Pv = present value  Fv ...

Q: Lakeside Inc. is considering replacing old production equipment with state-of-the-art technology tha...

A: Answer - Part 1 -  Calculation of Payback Period = = Initial Investment / Annual Cash inflow Given, ...

Q: Imagine that you are trying to evaluate the economics of purchasing a condominium to live in during ...

A: Here, Property taxes and maintenance expenditure = ​$6,000 per​ year,  Annual savings = $10,000 per ...

Q: 4. TSE company sells an old piece of equipment for $15,000 cash. At the same moment, it buys a new t...

A: Sale of equipment = $15000 Purchase of new truck = $25000 Payment of dividend = $2000

Q: 1. What are the different types of deposit accounts and loans offered to customers by any one commer...

A: Banks in Oman offer a wide range of financial products and services to large, medium, and small reta...