Alumbat Corporation has $800,000 in debt outstanding, and pays an interest rate of 10 percent annually on its bank loan. Alumbat's annual sales are $3,200,000, its average tax rate is 40 percent, and its net profit margin on sales is 6 percent. If the company does not maintain a TIE ratio of at least 4 times, its bank will refuse to renew its loan, and bankruptcy will result. Alumbat's currenttimes interest earnedratio is:
A. 2.4 times.
B. 3.4 times.
C. 3.6 times.
D. 4.0 times.
E. 5.0 times.
Answer: E
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Haylock Inc. bases its manufacturing overhead budget on budgeted direct labor-hours. The direct labor budget indicates that 7200 direct labor-hours will be required in August. The variable overhead rate is $1.80 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $100,380 per month, which includes depreciation of $8970. All other fixed manufacturing overhead costs represent current cash flows. The August cash disbursements for manufacturing overhead on the manufacturing overhead budget should be:
A. $104,370 B. $113,340 C. $12,960 D. $91,410
In a line process, there is little variability in the products manufactured, and production and material handling equipment are often specialized
Indicate whether the statement is true or false
Goods installed in or firmly affixed to personal property are called ________ if the identity of the original goods is not lost
a. attachments b. accessions c. fixtures d. chattels
If a firm has a positive debt-equity ratio, then the unlevered beta is greater than the levered beta
Indicate whether the statement is true or false