1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
san4es73 [151]
3 years ago
8

An analyst is evaluating two​ companies, A and B. Company A has a debt ratio of​ 50% and Company B has a debt ratio of​ 25%. In

his​ report, the analyst is concerned about Company​ B's debt​ level, but not about Company​ A's debt level. Which of the following would best explain this​ position?(A) Company B has much higher operating income than Company A.(B) Company A has a lower times interest earned ratio and thus the analyst is not worried about the amount of debt.(C) Company B has a higher operating return on assets than Company A, but Company A has a higher return on equity than Company B.(D) Company B has more total assets than Company A.
Business
1 answer:
Sidana [21]3 years ago
8 0

Answer:

C) Company B has a higher operating return on assets than Company A, but Company A has a higher return on equity than Company B.

Explanation:

The B company has a minor debt ratio compared with company A. Which according to the following formula, permits to conclude it has a higher operating return.

Return on equity = Debt Ratio - Total Liabilities / Total Assets.

You might be interested in
In September, Jeanette Company purchased materials costing $34,400 and incurred direct labor cost of $22,100. Manufacturing over
DedPeter [7]

Answer:

a. $34,900

Explanation:

The computation of the cost of direct material used is shown below:

= Opening balance of raw material + purchased materials - ending balance of raw material

= $10,300 + $34,400 - $9,800

= $34,900

Hence, the correct option is a.

7 0
3 years ago
The factors of production influence an item’s:
mylen [45]
The factors of production will influence an items' Availability.
6 0
3 years ago
Read 2 more answers
You pay $5,500 per year for insurance on your building. Fire damage caused $15,000 in repairs. The insurance company paid for th
ElenaW [278]

Based on the amount you pay now and the increase in insurance premiums, your annual insurance costs next year would be $6,325.

<h3>What is the next insurance cost next year?</h3>

The annual cost of insurance refers to the amount that is paid in premiums in a year.

That cost is currently $5,500 but will increase by 15%.

= Current insurance cost x ( 1 + rate of increase)

Solving gives:

= 5,500 x ( 1 + 15%)

= $6,325

Find out more on insurance cost at brainly.com/question/4953989.

6 0
2 years ago
When economists attempt to predict the spending patterns of U.S. households, they will typically view the _____________________
Digiron [165]
<span>When economists attempt to predict the spending patterns of U.S. households, they will typically view the DAILY COST OF LIVING as a primary determining factor that influences the individual consumption choices that each will make. 

An economist can predict the spending power of the masses if he/she knows how much energy and monetary value is being spent on a daily basis. This way he/she will know the consumption choices that these consumers are making for themselves.</span>
4 0
3 years ago
You are the manager of a retail store. You believe the economy is in a recession and that sales for the month will be unusually
Schach [20]

Answer:

C) False consensus

Explanation:

False consensus refers to the trust what one feel regarding other and think as similar for other person as he thinks. Also in this the opinions of the other persons would not be considered

Since in the question it is mentioned that the majority of the other store managers would feel the same way so here the false consensus would be applied

hence, the correct option is c.  

4 0
3 years ago
Other questions:
  • Your local movie theater earns a total revenue of $40,000 per month when the price of a movie ticket is $8, and it earns a total
    8·1 answer
  • Historically, the geographic division structure is associated with companies pursuing ________ strategies.
    15·1 answer
  • Calculate the ROE using the Strategic Profit Model for a company with the following data: Profit margin = 12% Total asset turnov
    9·1 answer
  • Jabiru Corporation purchased a 20% interest in Fish Company common stock on January 1, 2013 for $300,000. This investment was ac
    9·1 answer
  • Which ERP component can help an organization predict such things as the identification of individuals who are likely to leave th
    14·1 answer
  • Suppose that when the price per ream of recycled printer paper rises from​ $4 to​ $4.50, the quantity demanded falls from 800 to
    5·1 answer
  • Roundel Inc. is a company that sells automobile tires. The company is projecting an increase in sales in the next twelve months,
    12·1 answer
  • Jim is the daytime supervisor for an automobile assembly line. He supervises 45 people who perform relatively routine jobs that
    9·1 answer
  • A company has designed a new product and tested the prototype. what is the next step in product development?
    8·1 answer
  • Which action would be most likely to affect whether scroll bars appear in a Word document?
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!