A Firm Has Net Income of $31,300,depreciation of $5,100,taxes of $14,600,and

question 79

Multiple Choice

A firm has net income of $31,300,depreciation of $5,100,taxes of $14,600,and interest paid of $3,100.What is the cash coverage ratio?

• A)8.78
• B)10.10
• C)14.14
• D)16.32
• E)17.45

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Definitions:

Financing Activities

Cash flow activities related to raising capital and repaying shareholders, including issuing debt, selling equity, dividends, and repaying debt.

Guaranteed Annual Dividend

A promise by a corporation to pay its shareholders a specified minimum annual dividend.

Inventory Transfer

The movement of inventory from one location to another within the same company, which may involve transferring goods between departments or geographic locations.