0
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
Wiki User
∙ 12y ago
Add your answer:
Earn +20 pts
What is the interest earned on 600000?
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.
How does one calculate times interest earned?
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.
Interest earned on interest is known as?
Compound Interest
What is interest earned?
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.
What is the value of compound interest?
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.
What is the formula for times interest earned ratio?
Times Interest Earned = Operating Income/ Interest Expense.
A company's fixed interest expense is 8000 its income before interest expense and income taxes is 32000 Its net income is 9600 The company's times interest earned ratio is?
Formula for times interest earned = earning before interest and tax / interest expense Times interest earned = 32000 / 8000 = 4 times
How do you calculate simple interest earned?
simple interest = principle (money) times the rate times the time
If a firm has both interest expense and lease payments would times interest earned be smaller than fixed charge coverage?
times interest earned be smaller than fixed charge coverage
How do you calculate times interest earned if there was no interest expense?
Well that is easy there is none and there is no way you can do that
What is the interest earned on 600000?
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.
How does one calculate times interest earned?
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.
If the principal is 350 and the interest rate is 3 percent what is the simple interest earned in one year simple interest P and times r and times t?
I
Is interest earned calculated by multiplying the principle times the opportunity cost?
No.
What does a times interest earned ratio indicate?
the margin of safety provided to creditors
Example of unearned revenue?
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.
The number of times interest charges are earned is computed as?
Type y income before income tax plus interest expense, divided by interest expense our answer here...
