When the proportion of the total assets to equities ratio increases, it is an indication that the company is less dependent on the debts of creditors.
<h3>What is assets to equity ratio?</h3>
The assets to equity ratio represents the number of assets earned by an organization with the use of debt resources. If such ratio increases, the use of debts is lowered by the company.
An increase in the assets to equity ratio also indicates that the company is operating at very low risks of losing money, acquired through debt mode.
Hence, option B holds true regarding the assets to equity ratio.
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Answer:
d
Explanation:
just trust my last few brain cells
Answer:
its qute clear the answer to this question is b
Explanation:
and that is because the answer is clearly b
Answer:
It will take you 79 years to buy the yacht
Explanation:
The future amount of an investment can be calculated using the formula;
A=P(1+r)^n
where;
A=Future value of the investment
P=Initial deposit
r=annual interest rate
n=number of years of the investment
In our case;
A=300,000 since current price remains the same
P=(500×12)=6,000 yearly
r=5.1%=5.1/100=0.051
n=unknown
replacing;
300,000=6,000(1+0.051)^n
6,000(1.051)^n=300,000
1.051^n=300,000/6,000
1.051^n=50
ln 1.051^n=ln 50
n ln 1.051=ln 50
0.0497 n=3.912
n=3.192/0.0497
n=78.65 rounded up to 79 years
It will take you 79 years to buy the yacht