Answer:
Option b is correct
Net income = $370,000
Explanation:
Dividend paid to common stock holders = Dividend payout ratio× earnings available to common stockholder
Let the total earnings be "y"
120,000 =80%× y
y = 120,000/0.8
y= 250,000
Net income = Earnings payable to common stockholders + Preferred dividend
Net income = 250000 + 120,000 = $370,000
Net income = $370,000
Answer:
I don't there should be a problem with celebrities weighing in on politics.They are human right? I mean everyone has the right to say who they want to vote for. The only problem there might be is celebrities may impact the views of younger adults before they even know the people running and the opinions.
Explanation:
Answer:
It is true that raising gasoline prices (either by producing less of it, or by adding taxes) would reduce gasoline use. The concept of price elasticity of demand can helps us explain why.
Explanation:
A good can be either elastic or inelastic depending on its price elasticity of demand. A price elasticity of demand of less than 1 is considered inelastic, while a price elasticity of demand higher than 1 is considered elastic.
Elastic goods are those whose quantity demanded falls or rises more than the price. Inelastic goods are those whose quantity demanded falls or rises less than the price.
Gasoline is a inelastic good in the short-term because even with a price hike, most people will still buy gasoline because they need to move around. However, in the long-term, gasoline becomes more elastic because people replace their buy electric cars, or cars that use less fuel, etc.
What this tells us is that raising gasoline prices can reduce gasoline use in the long-term.
A built-in injustice in this measure is that it affects the poor disproportionally. Poor people also need cars to get around, and a rise in the gasoline price means that they have less money for other basic needs.
Answer:
5
Explanation:
The formula to compute the interest coverage ratio is shown below:
= (Earning before tax + interest expense) ÷ (interest expense)
where,
Earning before tax equal to
= Net income ÷ (1 - tax rate)
= $120 ÷ (1 - 0.40)
= $200
And interest expense is $50
So, the interest coverage ratio equal to
= ($200 + $50) ÷ ($50)
= 5
