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2-3 Wolken Corporation has $500000 of debt outstanding, and it pays an interest rate of 10 percent annually. Wolken's annual sales are $2 million, its average tax rate is 20 percent, and its net profit margin is 5 percent. If the company does not maintain a TIE ratio of at least 5, its bank will refuse to renew ...the loan what is wolkens tie ratio

Q: What is the example of the times interest earned?

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Not enough information. The interest earned depends on the capital (which is the only datum provided), on the interest rate, on the time (for example, how long you leave interest in your bank), and on whether simple or compound interest was agreed.

A times interest earned is calculated to determine how well a business could pay off its debts. It is calculated by taking the company's earnings before taxes and interest and dividing it by the interest on bonds payable and other debt.

Compound Interest

Interest is a certain amount of money added on top of what you already have. For example: If you had £1000 in your bank account, and the bank added 5% interest, you would gain £50 free from the bank for keeping that £1000 in your bank.

Compound interest increases the amount earned by adding credited interest to the principal, and interest will then be earned on that money as well. The longer the principal and interest remain in the account, the greater the earnings they will accrue.

Related questions

Times Interest Earned = Operating Income/ Interest Expense.

Formula for times interest earned = earning before interest and tax / interest expense Times interest earned = 32000 / 8000 = 4 times

simple interest = principle (money) times the rate times the time

times interest earned be smaller than fixed charge coverage

Well that is easy there is none and there is no way you can do that

Not enough information. The interest earned depends on the capital (which is the only datum provided), on the interest rate, on the time (for example, how long you leave interest in your bank), and on whether simple or compound interest was agreed.

A times interest earned is calculated to determine how well a business could pay off its debts. It is calculated by taking the company's earnings before taxes and interest and dividing it by the interest on bonds payable and other debt.

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No.

the margin of safety provided to creditors

Unearned revenue is income that you get without having to work for it. An example of this would be interest from stocks and bonds, dividend payments, or interest earned on a bank account.

Type y income before income tax plus interest expense, divided by interest expense our answer here...