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Veronika [31]
3 years ago
5

A company's interest expense is $20,000. Its income before interest expense and income taxes is $140,000. Its net income is $58,

800. The company's times interest earned ratio equals:_________ a) 0.42 b) 700 c) 2.38 d) 0.143 e) 0.34
Business
1 answer:
nydimaria [60]3 years ago
4 0

Answer:

7

Explanation:

The company's times interest ratio is calculated as;

= Its income before interest expense and any income taxes ÷ Interest expense

= $140,000 ÷ $20,000

= 7

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Suppose Potter Ltd. just issued a dividend of $2.50 per share on its common stock. The company paid dividends of $2.00, $2.07, $
Bogdan [553]

Answer:

Explanation:

Using dividend growth model formula for finding dividend per year can be used to find the growth rate per year;

The formula would be D1 = D0(1+g)

and D2 = D1(1+g)

D3 = D2 (1+g)  and so on....

Starting with 2.00 dividend,  <u>growth rate from yr1-yr2;</u>

2.07 = 2.00*(1+g)

Divide both sides by 2.00;

1+g = 2.07/ 2.00

1+g = 1.035

g = 1.035-1

g ( y1-y2) = 0.035 or 3.5%

<u>Growth rate from yr2-yr3;</u>

2.24 = 2.07(1+g)

Divide both sides by 2.07;

2.24/2.07 = 1+g

1.0821 = 1+g

1.0821-1 = g

g= 0.0821 or 8.21%

Therefore, g(y2-y3) = 8.21%

<u>Growth rate from yr3-yr4;</u>

2.34 = 2.24(1+g)

Divide both sides by 2.24;

2.34/2.24 = 1+g

1.0446 = 1+g

1.0446 -1 =g

g =0.0446 or 4.46%

Therefore, g(y3-y4) = 4.46%

<u>Growth rate from yr4-yr5;</u>

2.50 = 2.34(1+g)

2.50/2.34 = 1+g

1.0684 = 1+g

1.0684-1 = g

g=0.0684 or 6.84%

Therefore, g(y4-y5) = 6.84%

8 0
3 years ago
A disadvantage of corporations is that shareholders have to pay on profits.
olga_2 [115]

Answer:

taxes

Explanation:

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4 0
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tiny-mole [99]

Answer and Explanation:

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The meaning as a whole is fairly ambiguous and inconsistent. The reasoning isn't very powerful and there seems to be a lack of compassion.

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Alex787 [66]

Answer:

It is used by Fed to manage the economy by increasing or decreasing the amount of loans being made

Explanation:

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mezya [45]

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