Answer:
a. Debt Equity ratio is calculated by dividing long term Debt by total equity of the company.
b.Equity Multiplier or P/E ratio=Market value per share/Earning per share.
Explanation:
a. Debt Equity ratio is calculated by dividing long term Debt by total equity of the company. The Debt Equity ratio can be calculated using the Market value of debt or equity. It can also be calculated using the book values of debt or equity which are included in the balance sheet of the company.
b. Equity multiplier is also known as price /earning ratio. A price/earnings ratio or P/E ratio is the ratio of the market value of a share to the annual earnings per share. For every company whose shares are traded on a stock market, there is a P/E ratio. For private companies (companies whose
shares are not traded on a stock market) a suitable P/E ratio can be selected and used to derive a valuation for the shares.
Equity Multiplier or P/E ratio=Market value per share/Earning per share.
Answer:
True.
Explanation:
Managerial accounting involves managers using accounting information to better inform themselves before making business decisions. It involves analysing, interpreting and communicating financial data to managers to aid in achievement of organisation's goals.
Managerial accounting is for internal use in the business. Data is modified to meet specific need of the end-user. For example a manager may want to see sales figures for a quarter compared to business target. This will give an idea if the business is meeting it's objectives.
Answer:
are superior to other cultures.
Explanation:
- Ethnocentrism is the belief that indigenous culture, customs, and way of life are more important than other cultures. Ethnographers believe that their own culture, country, language and all other characteristics are superior to other cultures.
- so correct answer are superior to other cultures.
Carlin will pay a total of $45,000 for interests if she buys an $85,000 house.
<h3>What is the interest?</h3>
The interest refers to the amount of money Carlin needs to pay to the bank for the loan.
<h3>How is the interest calculated?</h3>
Total interest: Percentage given of the total loan.
Let's assume Carlin buys an $85,000 house.
- $85,000 - $20,000 (down payment) = $65,000
- $65,000 / 100 x 3.89 = $2528
$2528 would be the annual interest paid for $65,000. However, as Carlin pays her debt the total of money left will decrease and so will do the interest that she pays.
Due to this, the total interest would be approximately $45,000.
Learn mor about interest in: brainly.com/question/2883618
Answer: interest tax shield
Explanation: A tax shield is a reduction in taxable income for an individual or corporation achieved through claiming allowable deductions such as mortgage interest, medical expenses, charitable donations, amortization, and depreciation .
The term “interest tax shield” refers to the reduced income taxes brought about by deductions to taxable income from a company’s interest expense. For instance, there are cases where mortgages may have an interest tax shield for buyers since the mortgage interest is deductible against income. One of the main objectives of companies is to reduce their tax liability as much as possible. Interest tax shields encourage firms to finance projects with debt, since the dividends paid to equity investors are not deductible.
