1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
MaRussiya [10]
1 year ago
13

Vigo Vacations has an equity multiplier of 2.5. The company’s assets are financed with some combination of long-term debt and co

mmon equity. What is the company’s debt ratio?
Business
1 answer:
vfiekz [6]1 year ago
5 0

If Vigo Vacations has an equity multiplier of 2.5. The company’s assets are financed with some combination of long-term debt and common equity. The company’s debt ratio is 0.6.

<h3>Debt ratio</h3>

Using this formula to determine or find the company debt ratio

TA/TA-DC = 2.5

Where:

TA = Total assets

DC = Debt capital

Hence,

TA/TA-DC = 2.5

TA = 2.5(TA) - 2.5(DC)

2.5(DC) = 1.5(TA)

DC/TA= 1.5/2.5

DC/TA= 0.6

Therefore If Vigo Vacations has an equity multiplier of 2.5. The company’s assets are financed with some combination of long-term debt and common equity. The company’s debt ratio is 0.6.

Learn more about debt ratio here: brainly.com/question/21406342

#SPJ1

You might be interested in
Which of the following is true about development? Group of answer choices It involves the movement, over generations, of the bul
leonid [27]

Answer: It involves the movement, over generations, of the bulk of jobs from agriculture to manufacturing and service industries

Explanation:

Development involves the movement, over generations, of the bulk of jobs from agriculture to manufacturing and service industries. Technology is also influenced by technological change.

The least developed countries have most of their populations employed in the primary sector like agriculture and haven't completed the transition from manufacturing to services and have not yet entered the information age.

5 0
3 years ago
Which of the following is an adjustment to a pay rate to reflect differences in working conditions or labor markets?A. bonusB. p
Ksju [112]

Answer:

The correct answer is letter "B": pay differential.

Explanation:

Pay differential refers to the extra income received by an employee as a result of working out of the established working hours agreed in his or her contract. Pay differential is usually the monetary benefit a worker receives after working overtime or during a graveyard shift.

6 0
3 years ago
Rent expense in Volusia Company's 2016 income statement is $420,000. If Prepaid Rent was $70,000 at December 31, 2015, and is $9
d1i1m1o1n [39]

Answer:

$445,000

Explanation:

The rent in Volusian company income statement for 2016 is $420,000

The prepaid rent is $70,000 at December 31 2015 and $95,000 at December 31 2016

Therefore the cash paid for rent in 2016 can be calculated as follows

= $420,000+($95,000-$70,000)

= $420,000 + $25,000

= $445,000

5 0
3 years ago
Nonquantitative methods to forecast the future need for employees, usually based on the knowledge of a pool of experts in a subj
AlexFokin [52]

Nonquantitative methods to forecast the future need for employees, usually based on the knowledge of a pool of experts in a subject or an industry, is called QUALITAIVE FORECASTING in human resource forecasting.

Explanation:

  • Qualitative forecasting is an estimation methodology that uses expert judgment, rather than numerical analysis. This type of forecasting relies upon the knowledge of highly experienced employees and consultants to provide insights into future outcomes.
  • It is a statistical technique to make predictions about the future which uses numerical measures and prior effects to predict future events. These techniques are based on models of mathematics and in nature are mostly objective. They are highly dependent on mathematical calculations.
  • Qualitative forecasting is useful when there is ambiguous or inadequate data.
  • Qualitative forecasting is most useful in situations where it is suspected that future results will depart markedly from results in prior periods, and which therefore cannot be predicted by quantitative means.
3 0
3 years ago
Calculating the Times Interest Earned RatioIn the current year, Pringle Company reported Sales of $1,420,000, Interest Expense o
valina [46]

Answer:

Times interest earned ratio = Net operating income/Interest expense

                                             = $551,000/$512,000

                                             = 1.08 times

Explanation:

Times interest earned is the ratio of net operating income to interest income. Net operating income = $551,000 and interest expense = $512,000. The division of net operating income by interest expense gives times interest earned ratio.

4 0
3 years ago
Other questions:
  • Creative product differentiation can enable a small business to increase market share.
    9·1 answer
  • A buyer who has accepted goods may later revoke the acceptance if the buyer can show that the defects _____________ the value of
    11·1 answer
  • High quality goods and services are made available to consumers because of producers __________.
    10·2 answers
  • The assets and liabilities of Thompson Computer Services at March 31, the end of the current year, and its revenue and expenses
    6·1 answer
  • Financial risk applies to both the additional variability in earnings available to common shareholders and the additional chance
    7·1 answer
  • On January 1, Year 1, Savor Corporation leased equipment to Spree Company. The lease term is 9 years. The first payment of $698,
    6·1 answer
  • I need help on the first question , it's asking more or less​
    8·1 answer
  • Kasey Corp. has a bond outstanding with a coupon rate of 5.86 percent and semiannual payments. The bond has a yield to maturity
    10·1 answer
  • Question 1: Write an essay covering the following points;
    8·1 answer
  • If a consumer refuses to provide required suitability information, what must the producer/insurer do
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!