A firm has sales of $4,790, costs of $2,590, interest paid of $174, and depreciation of $483. The tax rate is 21 percent. What is the cash coverage ratio? Multiple Choice 12.64 times 7.01 times

Financial Management: Theory & Practice
16th Edition
ISBN:9781337909730
Author:Brigham
Publisher:Brigham
Chapter2: Financial Statements, Cash Flow,and Taxes
Section: Chapter Questions
Problem 7P
icon
Related questions
Question
A firm has sales of $4,790, costs of $2,590, interest paid of $174, and depreciation of $483. The tax rate is 21
percent. What is the cash coverage ratio?
Multiple Choice
12.64 times
7.01 times
9.78 times
9.87 times
16.77 times
Transcribed Image Text:A firm has sales of $4,790, costs of $2,590, interest paid of $174, and depreciation of $483. The tax rate is 21 percent. What is the cash coverage ratio? Multiple Choice 12.64 times 7.01 times 9.78 times 9.87 times 16.77 times
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps

Blurred answer
Knowledge Booster
Forecasting Financial Statement
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Financial Management: Theory & Practice
Financial Management: Theory & Practice
Finance
ISBN:
9781337909730
Author:
Brigham
Publisher:
Cengage
Intermediate Financial Management (MindTap Course…
Intermediate Financial Management (MindTap Course…
Finance
ISBN:
9781337395083
Author:
Eugene F. Brigham, Phillip R. Daves
Publisher:
Cengage Learning