Answer:
Classic Music, Inc.
C. 6.62 times
Explanation:
a) The times-interest-earned (TIE) ratio measures a company's ability to meet its debt obligations based on its current income. It is calculated as earnings before interest and taxes (EBIT) divided by the total interest payable on bonds and other debts.
b) The EBIT is $437,000 (Net Income + Income Tax and Interest Expenses).
c) Therefore, the TIE is equal to 6.62 times ($437,000/$66,000).
Answer:
14.6%
Explanation:
we can use the Gordon growth model to determine the market rate of return (or required rate of return for this stock or similar ones):
current stock price = dividend / (required rate of return - growth rate)
- current stock price = $26.91
- growth rate = 3.8%
- dividend in 1 year = $2.80 x 1.038 = $2.9064
$26.91 = $2.9064 / (RRR - 3.8%)
RRR - 3.8% = $2.9064 / $26.91 = 10.8%
RRR = 10.8% + 3.8% = 14.6%
Answer:
present value of annuity is $61445.66
Explanation:
given data
annuity P = $1,000 per year
time t = 10 year
rate r = 10% = 0.01
to find out
present value of annuity
solution
we will apply here present value formula that is
present value = P ( 1 - ( 1 + r )^-t ) / r ..........................1
put here all value for r, t and P in equation 1
present value = P ( 1 - ( 1 + r )^-t ) / r
present value = 1000 ( 1 - ( 1 + 0.1 )^-10 ) / 0.01
present value = 61445.66
so present value of annuity is $61445.66
Hello!
Skilled and professional workers generally receive higher wages than unskilled and semiskilled workers because there are more demand and less offer for this kind of workers.
To be a skilled or professional worker, extensive training and education are needed. To get this kind of training, there are personal investments in time and money that are needed to be made. Not everyone is willing to invest time and money in education, and some people can't do it for personal reasons.
That means that the amount of skilled and professional workers is lower than the number of unskilled ones. When there is reduced offer of a good or service, the price increases. That causes the wages for this kind of worker to be higher.
Have a nice day!
<span>Money provides four key functions for an economy,
1. medium of exchange
2. unit of account
3. store of value
4. standard of deferred payment
"when money specifies the value of something", it is performing a function as a medium of exchange, which is the primary function of money. Medium of exchange means the money is used to conduct transactions.
people use money to buy and sell goods.</span>
