Answer:
B. Suppose a firm wants to maintain a specific TIE ratio. It knows the amount of its debt, the interest rate on that debt, the applicable tax rate, and its operating costs. With this information, the firm can calculate the amount of sales required to achieve its target TIE ratio.
Explanation:
The times interest earned (TIE) ratio measures the company's ability to meet its debt obligations from its current income. The formula for calculating TIE number is 'earnings before interest and taxes (EBIT) divided by the total interest payable on all debts.
With the above definition and formula in mind it becomes <u>true</u> that if a firm wants to maintain a specific TIE ratio, If it knows the amount of its debt, the interest rate on that debt, the applicable tax rate, and its operating costs. With this information, the firm can calculate the amount of sales required to achieve its target TIE ratio, because;
With the parameters 'If it knows the amount of its debt, the interest rate on that debt,' It will work out total interest on all debts which is the denominator of TIE.
AND
With the parameters 'the applicable tax rate, and its operating costs' it will work out the Earnings Before Interest and Taxes'
Answer:
$25,249.50
Explanation:
Deposit at the beginning of every 6 month (A) = 90
Time period (t) = 5
n = 52
Rate (r) = 3% = 0.03
So, the net amount in the account right after the last deposit is as follows:
= A * [(1+r/n)^(n*t) - 1 / r/n] * (1 + r/n)
= 90 * [(1+0.03/52)^(52*5) - 1 / 0.03/52] * (1 + 0.03/52)
= 90 * [(1.16178399147 - 1 / 0.000577] * (1+0.000577)
= 90 * 280.3882 * 1.000577
= 25249.498559226
= $25,249.50
Answers are:
<span>They are flat
A single leader makes most decisions
Roles are undefined
</span>They are common to small businesses
In an entrepreneurial business structure, the owner-manager makes almost all decisions and performs various roles within the company. He interacts directly with the few employees he has, often performing roles that would be "beneath" the CEO of a larger company. This is called a flat organizational structure.
Roles are not generally well defined, as there are not enough employees for the level of specialization that larger companies would have. These are common features of a small business, often in the start-up phase.
Solution:
The operating cashflow (OCF), applies to the cash generated by the company from either the revenues it creates excluding long-capital or securities investments.
Operating cash flow is defined by the International Financial Accounting standards when cash produced from transactions, which is less tax and much less interest paid, income from investments and less dividend payments.
OCF {[(849 - $314) x 7,500] - $647,000} {1 - 0.21} + ($187,000 x 0.21)
= {4,012,500- $647,000}[0.79}+39,270
= $1,986,675
Answer:
Explanation:
Answer has been provided in the attachment
