Ivanhoe Rental Company had depreciation expenses of $189,000, interest expenses of $90,000, and an EBIT of...

Ivanhoe Rental Company had depreciation expenses of $189,000, interest expenses of $90,000, and an EBIT of $1,521,000 for the year ended June 30, 2017. What are the times-interest-earned and cash coverage ratios for this company? (Round answers to 1 decimal place, e.g. 12.5.)

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jeff jeffy answered 1 year ago

Pelamed Pharmaceuticals had EBIT of $ 475 million in 2018. In addition, Pelamed had interest expenses...

Pelamed Pharmaceuticals had EBIT of $ 475 million in 2018. In addition, Pelamed had interest expenses of $ 205 million and a corporate tax rate of 21 %. a. What is Pelamed's 2018 net income? The 2018 net income is $____million. (Round to the nearest integer.) b. What is the total of Pelamed's 2018 net income plus interest payments? The total of Pelamed's 2018 net income plus interest payments is $___ million. c. If Pelamed had no interest expenses, what...

Pelamed Pharmaceuticals had EBIT of $ 163 million in 2018. In addition, Pelamed had interest expenses...

Pelamed Pharmaceuticals had EBIT of $ 163 million in 2018. In addition, Pelamed had interest expenses of $ 79 million and a corporate tax rate of 22 %. a. What is Pelamed's 2018 net income? b. What is the total of Pelamed's 2018 net income plus interest payments? c. If Pelamed had no interest expenses, what would have been its 2018 net income? How does it compare to your answer in part (a)? d. What is the amount of Pelamed's...

EBITDA 220.00 Depreciation (49.50) EBIT 170.50 Interest (17.25) EBT 153.25 Tax...

EBITDA 220.00 Depreciation (49.50) EBIT 170.50 Interest (17.25) EBT 153.25 Tax (30%) (45.98) Net Income 107.28 Assuming that the tax rate is 30%, Working Capital and Fixed Capital investments are Zero, Calculating FCFF from Net Income shows the following: FCFF = Net Income + Interest Expense (1-T) + Depreciation Expense FCFF = 107.28 + 17.25 (1-0.3) + 49.50 FCFF = $ 168.85 Required: Why do you add back the after-tax interest but the...

Lauryn’s Doll Co. had EBIT last year of $49 million, which is net of a depreciation...

Lauryn’s Doll Co. had EBIT last year of $49 million, which is net of a depreciation expense of $4.9 million. In addition, Lauryn’s made $4.5 million in capital expenditures and increased net working capital by $2.2 million. Assume that Lauryn’s has a reported equity beta of 1.7, a debt-to-equity ratio of .7, and a tax rate of 21 percent. What is Lauryn’s FCF for the year?(Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places.)

Lauryn’s Doll Co. had EBIT last year of $44 million, which is net of a depreciation...

Lauryn’s Doll Co. had EBIT last year of $44 million, which is net of a depreciation expense of $4.4 million. In addition, Lauryn’s made $5.25 million in capital expenditures and increased net working capital by $3.3 million. Assume that Lauryn’s has a reported equity beta of 1.4, a debt-to-equity ratio of .7, and a tax rate of 21 percent. What is Lauryn’s FCF for the year?(Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places.)...

The Moore Corporation had operating income (EBIT) of $800,000. The company's depreciation expense is $240,000. Moore...

The Moore Corporation had operating income (EBIT) of $800,000. The company's depreciation expense is $240,000. Moore is 100% equity financed, and it faces a 35% tax rate. What is the company's net income? $ Assuming no changes to any of the Balance Sheet accounts, what is its net cash flow? $

Assume again that last year Brock had an EBIT of $1600, Depreciation of 600, capital expenditures...

Assume again that last year Brock had an EBIT of $1600, Depreciation of 600, capital expenditures of 700, operating NWC of 1000 and a tax rate of .25. However, Allan’s management believes that Brock will grow at 18% for the next 3 years, and at a constant rate of 5% thereafter. Recompute the value of Brock, assuming that its WACC will remain 10%.

Pelamed Pharmaceuticals has EBIT of $215 million in 2012. In addition, Pelamed has interest expenses of...

Pelamed Pharmaceuticals has EBIT of $215 million in 2012. In addition, Pelamed has interest expenses of $96 million and a corporate tax rate of 35%. a. What is Pelamed's 2012 net income? b. What is the total of Pelamed's 2012 net income plus interest payments? c. If Pelamed had no interest expenses, what would its 2012 net income be? How does it compare to your answer in part (b)? d. What is the amount of Pelamed's interest tax shield in...

Sales $3,000,000 Operating costs (excluding depreciation) 1,500,000 Gross margin $1,500,000 Depreciation 500,000 EBIT $1,000,000 Interest 500,000...

Sales $3,000,000 Operating costs (excluding depreciation) 1,500,000 Gross margin $1,500,000 Depreciation 500,000 EBIT $1,000,000 Interest 500,000 EBT $500,000 Taxes 200,000 Net income $ 300,000 The company’s president is disappointed with the forecast and would like to see the company generate higher sales and a forecasted net income of $750,000. Assume that the president wants to maintain the same proportion of operating costs (excluding depreciation). Also, assume that depreciation and the company’s tax rate will remain the same. The president wants...

Last year Miami Rivet had $5 million in operating income (EBIT). Its depreciation expense was $1...

Last year Miami Rivet had $5 million in operating income (EBIT). Its depreciation expense was $1 million, its interest expense was $1 million, and its corporate tax rate was 25%. At year-end, it had $14 million in operating current assets, $3 million in accounts payable, $1 million in accruals, $2 million in notes payable, and $15 million in net plant and equipment. Assume Miami Rivet has no excess cash. Miami Rivet uses only debt and common equity to fund its...

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