Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. thomson trucking has $25 billion in assets, and it

Thomson Trucking has $25 billion in assets, and its tax rate is 40%. Its basic earning...

90.2K

Verified Solution

Question

Finance

Thomson Trucking has $25 billion in assets, and its tax rate is40%. Its basic earning power (BEP) ratio is 19%, and its return onassets (ROA) is 5%. What is its times-interest-earned (TIE) ratio?Round your answer to two decimal places.

Answer & Explanation Solved by verified expert
3.7 Ratings (625 Votes)
Calculation of Times Interest Earned Ratio TIE Step1 Calculation of Earnings Before Interest and Tax EBIT Basic Earning Power BEP EBIT Total Assets 019 EBIT 25    See Answer
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Transcribed Image Text

Thomson Trucking has $25 billion in assets, and its tax rate is40%. Its basic earning power (BEP) ratio is 19%, and its return onassets (ROA) is 5%. What is its times-interest-earned (TIE) ratio?Round your answer to two decimal places.

Other questions asked by students

Q

If you deposit money today in an account that pays 13% annual interest, how long will...

Finance
Q

A company is currently located in Rafah and employs 50 people. Due to strong growth the...

Civil Engineering
Q

Which of the following statements regarding dissociation is true:(might be more than one answer) - is always symptomatic...

Psychology
Q

What would happen to a non halophile bacteria with damaged cell wall that are placed...

Biology
Q

45 A plano convex lens when silvered on the plane side behaves like a concave...

Physics
Q

The value of can be B me obtained by using a specially designed vacuum tube...

Physics
Q

If the billing cycle length for a credit card is one calendar month which of...

Geometry
Q

T My Activities QUESTION Tell me what you want to do Q TOMSZ Your income...

Algebra
Q

Find the function f t such that f t f t 40 t and f...

Algebra
Q

Fiduciary funds are usually used to primarily account for what type of resources? (one word)

Accounting
Q

Question-2: A company is considering the purchase of a new machine. The capital investment requirement...

Accounting
Q

Required information [The following information applies to the questions displayed below.] Big Tommy Corporation is...

Accounting