A business reported a $3,900 interest charge, a $16,600 profit before interest and taxes, and a $7,000 profit overall. The ratio of times interest earned by the corporation is 4.26.
<h3>What does the ratio of times interest earned indicate?</h3>
The times interest earned ratio measures a company's solvency by determining if it generates enough revenue to cover its debt. It specifically contrasts the revenue generated by a business before taxes and interest with the interest costs associated with its debt obligations.
The interest coverage ratio, sometimes referred to as the times interest earned (TIE) ratio, gauges how readily a business can settle its debts with its present income. Divide revenue by the total amount of interest due on bonds or other types of debt to arrive at this ratio.
Times Interest Earned Ratio = prior to interest costs and taxes on income / Interest Expense
Times Interest Earned Ratio = $16,600 / $3,900 = 4.26
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Answer:
Nike's revenues in the first quarter increased by 16.8% relative to the fourth quarter.
Explanation:
When assigning dummy variables, a number of dummies (the total number of variables less one) are always included.
In this case, Nike revenues are related to the dummies for each of the quarters in the year less 1. Base on this, the coefficient of 16.8 for the first quarter dummy indicates that the first quarter revenues for Nike increased by 16.8%, more than as compared to the fourth quarter revenues.
So, this quarterly dummies projects the coefficients which indicate the increase or decrease which was relative to the fourth quarter revenues. Base on this, the Nike's revenues in the first quarter increased by 16.8% relative to the fourth quarter.
Answer:
People have become more health conscious.
Explanation:
I paased this lesson with an 100%.
Answer:
B. relating an unknown value or price to another similar known value or price.
Explanation:
Anchoring is the term used to describe a phenomenon where individuals after being exposed to a particular figure (in this case a price) tend to subsequently use that figure as a reference point.
Thereby fixing of future prices will be biased towards this figure.
In this instance an anchor was in place and kept the customers loyal. But when Penney pulled up the anchor, many of the ccustomerswent away.