Answer:
1.90%
Explanation:
There is the accordance or connection between nominal and real interest rates. It is basically possible to convert from nominal interest rates to real interest rates. According to the Fisher, there is a equation that's called the Fisher Equation:
Real interest rate ≈ nominal interest rate − inflation rate.
On our example,
Inflation rate in October- 3.33%
Inflation rate in November- 2.90%
Nominal interest rate in October- 4.75%
Nominal interest rate in November- 4.80%
In October,
Real interest rate=4.75%-3.33%=1.42%
In November,
Real interest rate=4.80%-2.90%=1.90%
As a result, we see that there is 1.90% real interest rate in November and the real interest rate has increased 0.48% in November compared to October.
Resources are the assets, capabilities, processes, information, and knowledge that an organization uses to improve it's effectiveness and efficiency, to create and sustain competitive advantage, and to fulfill a need or solve a problem.
Answer: 1.41
Explanation:
Given that,
Debt outstanding = $300,000
interest rate = 8% annually
annual sales = $1.5 million
average tax rate = 40%
net profit margin on sales = 4%
interest amount = 300,000 × 0.08
= $24,000
net profit = 4% of 1.5 million
= $6,000
Profit before tax =
= $10,000
earning before interest and tax = profit before tax + interest
= $10,000 + $24,000
= $34,000
TIE ratio =
=
= 1.41
Answer and Explanation:
The preparation of the differential analysis is presented below:
Particulars Order rejected (Alternative 1) order accepted (Alternative 2) Differential Effect on Income (Alternative 2)
Revenues $0 $576,000 $576,000
($18,000 × $32)
Costs
Variable Manufacturing Costs $0 $522,000 -$522,000
($18,000 × $29)
Income (Loss) $0 $54,000 $54,000
We simply deduct the variable manufacturing cost from the revenues so that the income or loss could come