Use the information below provided by Angel Baby Angel Company: Sales 8,250,000.00 Operating costs 4,725,000.00 Operating income 3,525,000.00 Interest expense 1,750,000.00 Earnings before taxes 1,775,000.00 Taxes (40%) 621,250.00 Net income 1,153,750.00 WACC = 8%, Total invested capital 24,875,000. Question 1.) What is its TIE ratio? Use 4 decimal places in your final answer. 2.) What is its Return on Invested Capital? Use 2 decimal places in your final answer. Express in percentage 3.) Calculate the EVA. (2 decimal places)
Use the information below provided by Angel Baby Angel Company: Sales 8,250,000.00 Operating costs 4,725,000.00 Operating income 3,525,000.00 Interest expense 1,750,000.00 Earnings before taxes 1,775,000.00 Taxes (40%) 621,250.00 Net income 1,153,750.00 WACC = 8%, Total invested capital 24,875,000. Question 1.) What is its TIE ratio? Use 4 decimal places in your final answer. 2.) What is its Return on Invested Capital? Use 2 decimal places in your final answer. Express in percentage 3.) Calculate the EVA. (2 decimal places)
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter16: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 29E
Related questions
Question
Use the information below provided by Angel Baby Angel Company:
Sales |
8,250,000.00 |
Operating costs |
4,725,000.00 |
Operating income |
3,525,000.00 |
Interest expense |
1,750,000.00 |
Earnings before taxes |
1,775,000.00 |
Taxes (40%) |
621,250.00 |
Net income |
1,153,750.00 |
WACC = 8%, Total invested capital 24,875,000.
Question
1.) What is its TIE ratio? Use 4 decimal places in your final answer.
2.) What is its Return on Invested Capital? Use 2 decimal places in your final answer. Express in percentage
3.) Calculate the EVA. (2 decimal places)
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