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anyanavicka [17]
3 years ago
8

Long-term debt on the common-size balance sheet of Solid Rock Construction over the past three years is 30%, 34%, and 40%, respe

ctively. This indicates that the firm has increased its ______
Business
2 answers:
Katarina [22]3 years ago
3 0

Answer:

<u>Leverage.</u>

Explanation:

Long-term debt on the common-size balance sheet of Solid Rock Construction over the past three years is 30%, 34%, and 40%, respectively. This indicates that the firm has increased its <u>Leverage.</u>

Long Term Debt:

These are the debt which company has to pay with maturity of more than 12 months.

Leverage Ratios are the debt ratios. These ratios tells how company will meet its long term debt.  Leverage compares the assets or equity of company to the debt. If the shareholder assets are greater than creditor than company is less leveraged and vice versa.

Some of the ratios are:

  • Debt ratio
  • debt to equity ratio
  • Equity ratio
gtnhenbr [62]3 years ago
3 0

Answer:

The correct answer is: Leverage.

Explanation:

Leverage is when an investor or company is using <em>borrowed money to try to raise the rate of return earned on an investment</em>. Businesses and individual investors also make use of the leverage to raise their earnings. Leverage is better measured by using the debt to equity ratio which is calculated by taking the total debt of a company and dividing it by the total equity.

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big dog

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5 0
3 years ago
10. Which of the following factors should be considered when deciding on a career choice? Select
Keith_Richards [23]

Answer:

Explanation:

A career is a type of occupation that is done during a specific period of time. Careers offer a chance for progress. When choosing a career, one should consider the following factors;

1. Job requirements

One should consider the job requirements of that particular career since these requirements always determine how well one will perform in his/her career. The job requirements to be considered are; education level, level of expertise needed, and the experience.

2. Short-term goals

A short term goal is a set of predetermined achievements that one needs to attain usually in a short time frame. A career is an undertaking that is always long-term and therefor needs long-term goals rather than short-term goals.

3. Skills and interests

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4. Ease of job search

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4 0
3 years ago
On April 30, 2017, Cupidity Corp. purchased for cash all 200 shares of the outstanding common stock of Venality Corp. for $40 pe
just olya [345]

Answer:

$1,350

Explanation:

Goodwill is the Excess of Cash Consideration over the Net Assets taken over. Net Assets taken over are measured at their Fair Market Value instead of Book Values at the Acquisition date.

Where,

Cash Consideration = $8,000

Fair Value of Net Assets Acquired ($6,000 + ) = $6,650

Therefore,

Goodwill = $8,000 - $6,650

               = $1,350

8 0
2 years ago
Suppose that in 1984 the total output in a single good economy was 12,000 buckets of chicken. Also assume that in 1984 each buck
xxMikexx [17]

Answer:

The GDP price index for 1984 using 2005 as the base year was 80%

Explanation:

The GDP price index:

X/100 = $16/$20

X = 80%

Therefore, The GDP price index for 1984 using 2005 as the base year was 80%

6 0
3 years ago
You are considering buying a stock with a beta of 3.05. If the risk-free rate of return is 8.0%, and the expected return for the
elena55 [62]

Answer:

38.5%

Explanation:

Rf = 8.0%

Rm = 18.0%

Beta = 3.05

RRR ?

from the given data the capital asset pricing model will be used to calculate the RRR

RRR = Rf + β (Rm - Rf)

        =8.0 + 3.05 (18.0-8)

         =38.5%

6 0
3 years ago
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