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Alexxandr [17]
3 years ago
8

Molteni Motors Inc. recently reported $3.5 million of net income. Its EBIT was $5.25 million, and its tax rate was 30%. What was

its interest expense? (Hint: Write out the headings for an income statement and then fill in the known values. Then divide $3.5 million net income by 1 − T = 0.7 to find the pre-tax income. The difference between EBIT and taxable income must be the interest expense.) Round your answer to the nearest dollar. Enter your answer in dollars. For example, an answer of $1.2 million should be entered as 1,200,000.
Business
1 answer:
Hatshy [7]3 years ago
7 0

Answer:

$250,000

Explanation:

The computation of the interest expense is shown below:

Given that

Net Income = $3,500,000

Tax rate = 30%

EBIT = $5,250,000

As we know that

EBT = EBIT - Interest Expense

So,

Interest expense = EBIT - EBT

where,

EBT = Net Income ÷ (1 -Taxes)

= $3,500,000 ÷ ( 1 - 30%)

= $5,000,000

And, the EBIT is $5,250,000

So, the interest expense is

= $5,250,000 - $5,000,000

= $250,000

We simply applied the above formula

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Mini Mart suspects that Junior is stealing candy. The next time Junior comes into the store, the manager at Mini Mart detains Ju
max2010maxim [7]

Answer:

The mini mart manager actually doing the right thing.

But The police still come and ask for the proof from the managers for the basis of the accusation

Explanation:

Most states in united states allowed Business establishment to legally detained the people who they suspect to be stealing. This action is protected under the probable cause.

But , there are several requirements that the business onwer needs to follow:

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- They shall not publish the information about the case to the public unless the court determine that the suspect is guilty.

- The basis of the detain must be reasonable.

In the case above, the police will most likely come and ask the manager to provide proof. (usually by looking at the camera footage in the store or witnesses) . If the police believe the proof to be sufficient,  the suspect will be processed accordingly.

3 0
3 years ago
The ____ of the characteristic line of a stock's returns versus those of the market measures the stock's systematic risk
Zielflug [23.3K]

The <u>slope</u> of the characteristic line of a stock's returns versus those of the market measures the stock's systematic risk.

8 0
2 years ago
A real estate broker is employed by a buyer, as an agent. When the broker finds a property the buyer might be interested in buyi
Viktor [21]

Answer:

Disclosure.

Explanation:

In this scenario, a real estate broker is employed by a buyer, as an agent. When the broker finds a property the buyer might be interested in buying, the broker is careful to find out as much as possible about the property's owners and why the property is on the market. The broker's efforts to keep the buyer informed of all facts that could affect a transaction is the duty of disclosure. A disclosure is a legally binding agreement between the buyer and seller of a property, wherein the seller highlights all the information or details they know about the property for the purpose of enlightening and informing the buyer. It contains informations such as legal encumbrance, structural flaw, size of property etc.

6 0
3 years ago
________ uses buyers' perceptions of what a product is worth as the key to pricing.
olga2289 [7]
The answer is <span>Customer value-based pricing
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</span>the productss that used this type of pricing usually a tertiary products such as jewelry or rare collectibles.
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2 years ago
If markets are efficient, what should be the correlation coefficient between abnormal stock returns for two non-overlapping time
LUCKY_DIMON [66]

The correlation coefficient between stock returns for two non-overlapping periods should be zero. If not, one could operate returns from one period to predict returns in later periods and make abnormal profits.

<h3>What are abnormal stock returns?</h3>

Abnormal returns in stock market trading are variances between performance of a particular stock or portfolio and expected return over a specific time period. The predicted return is typically calculated using a wide index, like the S&P 500, or a national index, like the Nikkei 225. A return that differs from the anticipated return on an investment is called an abnormal return. Investors can estimate risk-adjusted performance by looking for atypical returns, which can be either positive or negative in direction.

An anomalous return is the discrepancy between the actual return of a security and the predicted return. "Events" can sometimes cause abnormal returns. In statistics, correlation coefficients are frequently utilized in the field of investing. They are crucial in fields including performance assessment, quantitative trading, and portfolio composition.

Hence, The correlation coefficient between stock returns for two non-overlapping periods should be zero. If not, one could operate returns from one period to predict returns in later periods and make abnormal profits.

To learn more about abnormal stock returns refer to:

brainly.com/question/19721262

#SPJ4

8 0
1 year ago
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