Answer:
8.5
Explanation:
The company interest expense is $26,000
The income tax is $221,000
The net income is $106,100
Therefore the company times interest earned ratio can be calculated as follows
= Income tax/interest expense
= 221,000/ 26,000
= 8.5
Hence the company times interest earned ratio is 8.5
Answer:
A. Entrepreneurship
Explanation:
A command economy is a form of economic system in which the government decides the method of production, price of the goods, and the sale of the goods in the market. It is the opposite of the free market economy. Such type of economy is found in the communist society where the government plays the role of the supreme authority. All the economic activities are controlled by the government while the means of production can be owned by the public.
Answer:
M = $4
N = $2
O = $3
Explanation:
Contribution margin = Sales - Variable Costs
Therefore,
M N O
Sales $ 7 $ 4 $ 6
Less Variable costs ($ 3) ($ 2) ($ 3)
Contribution $4 $2 $3
Answer:
Risk-free rate (Rf) = 8%
Return on market portfolio (Rm) = 15%
Beta (β) = 1.2
Ke = Rf + β(Rm - Rf)
Ke = 8 + 1.2(15 - 8)
Ke = 8 + 1.2(7)
Ke = 8 + 8.4
Ke = 16.40%
Earnings per share (EPS) = $10
Current dividend paid (Do) = 40% x $10 = $4
Retention rate (b) = &6/$10 x 100 = 60% = 0.6
ROE (r) = 20% = 0.2
Growth rate (g) = b x r
= 0.6 x 0.2
= 0.12 = 12%
Current market price (Po)
= Do<u>(1 + g) </u>
Ke - g
= $4<u>(1 + 0.12)</u>
0.1640 - 0.12
= $4<u>(1.12)</u>
0.044
= $101.82
Explanation:
First and foremost, we need to calculate the cost of equity based on capital asset pricing model. Then, we will determine the growth rate, which is a function of retention rate (b) and return on equity(r).
Finally, we will calculate the current market price, which is dividend paid, subject to growth, divided by the excess of cost of equity over growth rate.
Answer:
$38.50
Explanation:
Warranty expense is on the sales value so the cost is to be disregarded.
7% of $550 = $38.50