AEI Incorporated has $5 billion in assets, and its tax rate is 40%. Its basic earning power (BEP) ratio is 10%, and its return on assets (ROA) is 5%. What is AEI’s times interest-earned (TIE) ratio?

Q: Ozark Industries reported net income of $75 million in 2002. The company’s corporate tax rate was 40…

A: The sales level of a company directly affect the company's net income. In order to increase the net…

Q: MPI Incorporated has $6 billion in assets, and its tax rate is 35%. Its basic earningpower (BEP)…

A: Asset =6 billion Tax =35% Basic earnings power ratio =11% Return on Asset =6%

Q: Crystal Oil has $9 million in accounts payable, $1.8 million in salaries and taxes payable, and…

A: Payables deferral period of a company, is nothing but the average time period taken to pay the…

Q: AEI Incorporated has $5billion in assets, and its tax rate is 40%. Its basic earning power (BEP)…

A: Assets = $ 5 billion Tax rate (T) = 40% BEP ratio = 11% ROA = 10%

Q: What is Chipotle’s TIE

A: TIE of a company means Times Interest Ratio or interest cover ratio of a company. It evaluates a…

Q: Dave's Lumber earned $120 million last year and retained $72 million. A. What is his payout ratio?

A: Calculating the value of dividend paid. We have,Value of dividend paid = Total Earnings – Retained…

Q: Local Co. has sales of $10.9 million and cost of sales of $6.1 million. Its selling, general and…

A: Ratio Analysis is the method of checking the company's operational efficiency, liquidity, and…

Q: Majan Mining has found that its cost of common equity capital is 15 percent and its cost of debt…

A: Cost of Equity Capital = 15% Cost of Debt = 12% Tax Rate = 35% After tax cost of debt = Cost of Debt…

Q: Barton Industries has operating income for the year of $3,100,000 and a 38% tax rate. Its total…

A: Given information: Operating income: $3,100,000 Tax : 38% Investment : $20,000,000 Cost of capital :…

Q: The Grey Corporation has $12 billion in assets, and its tax rate is 40%. The company’s basic…

A: Basic earning power(BEP)= Earnings Before Interest & Taxes(EBIT) / Total Assets 15%= EBIT /…

Q: The Stevia Corporation has $5 billion in assets, and its tax rate 40%. The company’s basic earning…

A: The question is based on the concept of time-interest-earned (TIE) ratio, which is calculated as…

Q: graser trucking has $12 billion in assets, and its tax rate is 40%. its basic earning power (BEP)…

A: Earnings before interest and tax are $1.8 billion.   Interest expenses are $8 million…

Q: Lilly Inc has a DSO of 20 days, and its annual sales are $3,550,000. What is its accounts receivable…

A: (Note: We’ll answer the first question since the exact one wasn’t specified. Please submit a new…

Q: Thomson Trucking has $16 billion in assets, and its tax rate is 40%.Its basic earning power (BEP)…

A: The time's interest earned ratio is the ratio which shows the ability of the company to meet the…

Q: TnT has $16billion in assets, and its tax rate is 40%.  Its BEP ratio is 10% and its ROA is 5%.…

A: TIE refers to times-interest-earned ratio. TIE ratio measures the ability of a firm to pay off its…

Q: Last year the Rondoelea Products Company had $142 million in annual sales and a net profit margin…

A: EBIT = [ (Sales x net profit margin) / (1 - tax rate) ] + (Amount of debt * Interest rate) EBIT =…

Q: IF a corporation earns $240,000 and the payout ratio ( proportion distributed) is 20 percent, what…

A: Given: Total earnings = $240000 Payout ratio =20% = 0.20

Q: Ruby Corp's sales last year were $435,500, its operating costs were $350,000, and its interest…

A: TIE number is earnings before interest and taxes (EBIT) divided by the total interest payable

Q: McShane Corporation has sales of $300,000, a gross profit margin of 35%, operating expenses of…

A: The time interest earned ratio is the ratio that provides the ability of the company to pay of its…

Q: PMM has $17 million in sales, its ROE is 17%, and its total asset turnover is 3.2X.  Common equity…

A:

Q: watson is a division of Bolin Products, Inc. During the most recent year, Watson had a net income of…

A: The funds invested in the firm by its owners, debt holders, and lenders during the course of its…

Q: Peterson Packaging Corp. has $9 billion in total assets. The company's basic earning power (BEP)…

A: BEP ratio =9% Total assets =$9 billion  Time earned ratio =3

Q: . How would each of these plans affect earnings per share? Consider the current plan and the two new…

A: Answer a:

Q: Russell Securities has $100 million in total assets and its corporate tax rate is 40 percent.  The…

A: Before we get into the question, let's understand the two ratios involved in the question:1. BEP =…

Q: The Moore Corporation has operating income (EBIT) of $750,000. The company’s depreciation expense is…

A: Net income is calculated by using the following formula: NI = (EBIT - Interest) * (1 - tax rate) Net…

Q: PBB Company has a net operating income of $15 million. Further, the company has $100 million of debt…

A: Value of a company is summation of value of equity and value of debt where value of equity can be…

Q: The cost of capital is 15%, the before-tax cost of debt is 9%, and the mar-ginal income tax rate is…

A: The cost of capital is the cost of raising funds a firm has to bear. It is the weighted average cost…

Q: Carter Corporate has current assets of $120 million and inventory equal to $30 million. If Carter’s…

A: To calculate the current ratio we will use the below formula   Current ratio = Current…

Q: Chipotle has $2,500 million in assets, consisting of $1,055 million in debt, $1,445 million in…

A:

Q: A company has annual after-tax operating cash flows of P2,000,000 per year which are expected to…

A: After-tax operating cash flows = P 2,000,000 After tax WACC = 8%

Q: Take It All Away has a cost of equity of 10.57 percent, a pretax cost of debt of 5.29 percent, and a…

A: A company has several sources from where it can raise funds. It can issue equity shares and the…

Q: Humphrey Hotels' operating income (EBIT) is $40 million. The company's times interest earned (TIE)…

A: Given:  EBIT  $40 million Times interest earned(TIE) 8 times Tax rate  40% Basic Earning…

Q: Orono Corp.'s sales last year were $575,000, its operating costs were $362,500, and its interest…

A: As per formula Times interest earned (TIE) ratio = (Sales-Operating cost)/Interest expenses   Where…

Q: The firm had sales of $33 million, operating expenses of $14 million, interest of $4 million and…

A: Earnings before interest & taxes(EBIT) is the income generated by an entity before making…

Q: MPI Incorporated has $3 billion in assets, and its tax rate is 35%. Its basic earning power (BEP)…

A: BEP ratio=EBITTotal Assets0.13=EBIT$3 billionEBIT=$3 billion×0.13EBIT=$0.39 billion   ROA=Net…

Q: Two Sisters Dresses has net working capital of $43,800, net fixed assets of $232,400, net income of…

A: Net working capital - $43,800 Net Fixed assets - $232,400 Net income - $43,900 Current liabilities -…

Q: Sheaves, Inc., has sales of $54,000, costs of $24,600, depreciation expense of $2,650, and interest…

A: Operating Cash Flow = EBIT + Depreciation - Taxes   EBIT = Sales - Cost - Depreciation - Interest

Q: BN had 5 degrees of operating leverage when its profit before taxes was P200,000. If the company’s…

A: Degree of operating leverage = % change in operating income% change in sales…

Q: Red Company has a profit margin of 15 percent on sales of $20,000,000. If the firm has a debt of…

A: Solution:- The return on Total Assets ratio measures how much net income the company earns on its…

Q: Russell Securities has $100 million in total assets and its corporate tax rate is 40 percent. The…

A: Total assets =$100 million  BASIC EARNING POWER =15% Tax=40% RETURN ON ASSETS =9

Q: Lamas has a weighted average cost of capital of 8.4 percent. The company's equity is II percent, and…

A: The debt Equity ratio states how much debt the company has in its capital structure. Generally the…

Q: Take It All Away has a cost of equity of 11.05 percent, a pretax cost of debt of 5.40 percent, and a…

A:

Q: Ogier Incorporated currently has $800 million in sales, which are projected to grow by 10% in Year 1…

A: Operating Profit: Operating profit refers to the profit generated by the firm from normal business…

Q: Cecil, Inc. has sales of $682,100. Earnings before interest and taxes is equal to 20 percent of…

A: Profit margin: This ratio indicates the percentage of sales which converted into profit. It is…

Q: Holly Farms has sales of S509,600, costs of $448,150, depreciation expense of $36,100, and interest…

A: Here, Sales is $509,600 Costs is $448,150 Depreciation Expense is $36,100 Interest Paid is $12,400…