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vivado [14]
1 year ago
8

the records of pippins, incorporated, included the following information: net sales $ 1,000,000 gross margin 475,000 interest ex

pense 50,000 income tax expense 80,000 net income 240,000 compute the times interest earned ratio, rounded to the nearest decimal. multiple choice 4.8 6.4 7.4 20.0
Business
1 answer:
Dafna11 [192]1 year ago
7 0

The time interest earned ratio of the company was found to be 7.4 times to the expenses.

EBIT = Net Income + Interest Expense + Income tax Expense

= 240,000 + 50,000 + 80,000

= 370,000

Times Interest Earned Ratio:

EBIT / Interest Expense

= 370,000 / 50,000

= 7.4 times

Times interest earned ratio is a good way to measure a company's financial performance because it shows a company's ability to pay interest charges on its debts the ratio is calculated by taking a company's net income before interest and taxes and dividing it by the company's interest expense.

Learn more about Debts at : brainly.com/question/17286021

#SPJ4

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A job analysis method is ________ if it accurately assesses each job's duties.
sveta [45]
A job analysis method is valid if it accurately assesses each job's duties. 

A job analysis helps companies list appropriate taste and expectations for a job listing. It's important to make sure the people applying for the job and ultimately getting hired are well aware of their tasks and responsibilities in that position. 
8 0
3 years ago
For some time now, GlaxoSmithKline (GSK), a pharmaceutical company, has been making anti-AIDS drugs available in underprivileged
Charra [1.4K]

Answer:

Discretionary responsibility

Explanation:

Discretionary responsibility refers to a voluntary decision of a company to make a contribution to the society that it is not required to do and it is beyond the expectations to help the community. According to this, the answer is that by providing the drugs at a lower cost, GSK is fulfilling its discretionary responsability because the company is going beyond its obligations and it is contributing to society by making anti-AIDS drugs available at up to 75% less than the global price.

7 0
3 years ago
If at a price of $24, Octavia sells 36 home-grown orchids and at $30 she sells 24 home-grown orchids. What is the change in quan
Ad libitum [116K]

Answer:

12

Explanation:

At the price of $24, the demand is 36

At the price of $30, the demand is 24

change in quantity demanded

= 36-24

= 12

3 0
3 years ago
A bank has written a call option on one stock and a put option on another stock. For the first option the stock price is 50, the
iris [78.8K]

Answer:

10-Day 99% VaR = 3.61

Explanation:

Data Given:

For First Option:

Stock Price = 50

Strike Price = 51

Volatility = 28% per annum

Time to maturity = 9 months

For Second Option:

Stock Price = 20

Strike Price = 19

Volatility = 25% per annum

Time to maturity = 12 months or 1 year

Risk Free Rate = 6% per annum

Correlation = 0.4

Find 10-day 99% VaR.

Solution:

First of all we need to refer the DerivaGem Model to dig out the change in price equation for both the options.

So, according to DerivaGem Model, We have following data:

For First Option:

Value  = -5.413

Delta Value = -0.589

For Second Option:

Value = -1.014

Delta = -0.284

Change in Price = (Delta value of First Option x Stock Price)Y1 + (Delta value of the second option x Stock Price)Y2

Change in Price = (-0.589 x 50)Y1 + (-0.284 x 20)Y2

So, We will get the Change in Price Linear Equation for both the options.

Change in Price = -29.45Y1 -5.68Y2

Now, we have to calculate the Daily Volatility Percentage.

Formula:

Daily Volatility Percentage = Volatility/ Square root of number of days active in annum

Number of Days Active = 252

Volatility for First Option = 28%

Volatility for Second Option = 25%

Daily Volatility Percentage for First Option = 28%/\sqrt{252}

Daily Volatility Percentage for First Option = 0.0176

Similarly,

Daily Volatility Percentage for Second Option = 25%/\sqrt{252}

Daily Volatility Percentage for Second Option = 0.0157

Now, utilizing the above calculated data, we can find the one-day variance of change in price.

1-Day Variance =(29.45^{2} *0.0176^{2}) + (5.68^{2} * 0.0157^{2}) - (2 * 29.45 * 0.0176 * 5.68 * 0.0157 * 0.4)

Solving the above equation:

We get:

1-Day Variance = 0.2396

Now, we have to find the standard deviation of 1-Day Variance:

SD of 1-Day Variance = \sqrt{0.2396}

SD of 1-Day Variance = 0.4895

So,

Now, in order to find the value of one day 99% VaR from the table, we have all the prerequisites.

So,

Value of One day 99% VaR from table = 2.33

But we need 10-Day 99% VaR.

So, number of days = 10

Hence,

10-Day 99% VaR = 0.4895 * 2.33 * \sqrt{10}

10-Day 99% VaR = 3.61

8 0
2 years ago
Which part of the economy is represented by box C on the circular flow
arlik [135]

Answer: I DONT KNOW

Explanation: PICK ONE

6 0
2 years ago
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