This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: A new firm is developing its business plan. It will require $680,000 of assets, and it projects ... (Read 58 times)

Labomba

  • Full Member
  • ***
  • Posts: 161
on: Aug 7, 2023
A new firm is developing its business plan. It will require $680,000 of assets, and it projects $551,300 of sales and $402,100 of operating costs for the first year. Management is quite sure of these numbers because of contracts with its customers and suppliers. It can borrow at a rate of 8.1%, but the bank requires it to have a TIE ratio of at least 4.6, and if the TIE ratio falls below this level the bank will call in the loan and the firm will go bankrupt. What is the maximum debt ratio the firm can use? (Hint: Find the maximum dollars of interest, then the debt that produces that interest, and then the related debt ratio.)

◦

56.31%


◦

57.60%


◦

58.89%


◦

59.02%

Financial Management: Theory and Practice ¦ Brigham, Ehrhardt, Gessaroli, Nason ¦ 4th Edition
Buy Test-Bank


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by Labomba on Aug 7, 2023

ludadtpb

  • Full Member
  • ***
  • Posts: 175
Reply #1 on: Aug 7, 2023
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
Answer Preview
Only 25% of students answer this correctly


Labomba

  • Member
  • Posts: 161
Reply 2 on: Aug 7, 2023
Wow, this really help

connor417

  • Member
  • Posts: 329
Reply 3 on: Yesterday
Gracias!

« previous next »
 

Did you know?

Though methadone is often used to treat dependency on other opioids, the drug itself can be abused. Crushing or snorting methadone can achieve the opiate "rush" desired by addicts. Improper use such as these can lead to a dangerous dependency on methadone. This drug now accounts for nearly one-third of opioid-related deaths.

Did you know?

A strange skin disease referred to as Morgellons has occurred in the southern United States and in California. Symptoms include slowly healing sores, joint pain, persistent fatigue, and a sensation of things crawling through the skin. Another symptom is strange-looking, threadlike extrusions coming out of the skin.

Did you know?

By definition, when a medication is administered intravenously, its bioavailability is 100%.

Did you know?

In most cases, kidneys can recover from almost complete loss of function, such as in acute kidney (renal) failure.

Did you know?

If you use artificial sweeteners, such as cyclamates, your eyes may be more sensitive to light. Other factors that will make your eyes more sensitive to light include use of antibiotics, oral contraceptives, hypertension medications, diuretics, and antidiabetic medications.

Basic two-handed kneading. Tissues are lifted with the whole hand in firm contact. Basic two-handed kneading. Tissues are lifted with the whole hand in firm contact.
How to choose the right payment plan with changing conditions (Question 1) How to choose the right payment plan with changing conditions (Question 1)
Growth in the demand for oil from the developing world Growth in the demand for oil from the developing world
The developing organism senses maternally transmitted environmental cues The developing organism senses maternally transmitted environmental cues
International Business Management International Business Management
Coelomate Body Plan: Earthworm Coelomate Body Plan: Earthworm
Video: Knee Animation

For a complete list of videos, visit our video library