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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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In contrast to goods and services markets, _____________ are rare in labor markets, because rules that prevent people from earni
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Answer:

price ceilings

Explanation:

In contrast to goods and services markets, <u>price ceilings</u>  are rare in labor markets, because rules that prevent people from earning income are not politically popular.

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3 years ago
Patel is writing a persuasive message introducing a new brand of detergent into the marketplace. Patel does not intend to encour
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Answer: Marketing.

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6 0
4 years ago
Organizing as a corporation makes it easier for the firm to raise capital. This is because corporations' stock-holders are not s
My name is Ann [436]

Answer:

A) True

Explanation:

Organizing a partnership has several advantages; it is much faster, simpler and easy, start up costs are very low, etc.

But it has one huge disadvantage over a corporation, the partners are completely liable for the partnership's debts and obligations. That means that if the partnership goes bankrupt, the partners must pay all the debts and obligations. While a corporation's stockholders are only liable for the amount they invested in stock, i.e. you buy $10,000 in stock, then all you can lose is $10,000.

Also a corporations stocks are easily traded while a it is very complicated to transfer partnerships' rights.

3 0
4 years ago
Wendy wants to start a business. She knows many unaccredited investors who she knows will help her jumpstart her business. What
vodka [1.7K]

Available Options are:

A. Investors' allowable investment depends on the accredited or non-accredited status.

B. Investors may invest a combined $50 million within a 12-month period.

C. Investors may invest no more than $1 million combined for the first year of the business.

Answer:

Option C. Investors may invest no more than $1 million combined for the first year of the business.

Explanation:

The non-accredited investors do not invest more than $1 million for first year. Furthermore, for Investor it also imposes investment in current business conditions which says that Investor can invest in its business with greater of:

1. $2000

2. Or the lesser of (If the net worth of Wendy is less than $100,000)

  • 5% of its total income for the year
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There is also an option which is available if the net worth of Investor exceeds above $100,000 then he can invest up to lesser of 10% of his income or net worth, otherwise he will have to follow the above conditions.

Here, it also has an upper limit, which means that the investor can not invest more than $100,000 in the subsequent year, whatever the level of net worth or income he had for the year.

This means the non-accredited investor can not invest more than $1 million.

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3 years ago
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