Answer: calculated by dividing total liabilities by net worth.
Explanation:
The debt to equity ratio is used to know how credit worthy a company is. This is gotten by dividing the total liability of a company by the equity of the shareholder.
It should be noted that the debt t equity ratio isn't gotten dividing your assets by liabilities. Therefore, based on the information given above, the answer is A.
Answer:
Explanation:
Fixed costs - will remain similar no matter of output amount
Variable costs - vary with the change in output
Average cost=(Fixed cost(FC) + Variable cost(VC))/number of units produced
VC = VC per cup of coffee served *cup of coffee served in a week
Total Cost(TC)= FC+VC
Average cost=TC/Cup of coffee served in a week
1. Let's calculate for 2000 cups of coffee:
FC remain the same! = $1200
VC=0.22*2000= $440
TC=FC+VC= 1200+440= $1640
Average cost of 1 cup of coffee= TC/#of cups=1640/2000=$0.82
2. Calculation for 2100 cups:
FC=1200
VC=0.22*2100=462
TC=1200+462=1662
Av cost=1662/2100=0.79
3. Calculation for 2200 cups:
FC=1200
VC=0.22*2200=484
TC=1200+484=1684
Av cost=1684/2200=0.77
As the number of cups increased from 2000 to 2100, the average cost per cup devreased 0.82 to 0.79. Then when number of cups increased to 2200, average cost decreased to 0.77. The reduction is due to the variable cost
Answer:
- a) _F_ Sold long-term investments for cash.
- b) _(O)_ Received cash payments from customers.
- c) _(O)_ Paid cash for wages and salaries.
- d) _(O)_ Purchased inventories for cash.
- e) (F)_ Paid cash dividends.
- f) _(F)_ Issued common stock for cash.
- g) _(O)_ Received cash interest on a note.
- h) _(O)_ Paid cash interest on outstanding notes.
- i) _(I)_ Received cash from sale of land at a loss.
- j) _(O)_ Paid cash for property taxes on building.
Explanation:
- a) _F_ Sold long-term investments for cash.
- e) (F)_ Paid cash dividends.
- f) _(F)_ Issued common stock for cash.
Financial Decision are those what are needed to planning the new financial needs, it's necessary to decide the various scources in the capital mix of the firm.
- b) _(O)_ Received cash payments from customers.
- c) _(O)_ Paid cash for wages and salaries.
- d) _(O)_ Purchased inventories for cash.
- g) _(O)_ Received cash interest on a note.
- h) _(O)_ Paid cash interest on outstanding notes.
- j) _(O)_ Paid cash for property taxes on building.
The operatives decision are related to the organization of the business, which things buys and how to pay it, the managment of stock, accounts receivables / payables
- i) _(I)_ Received cash from sale of land at a loss.
The Investment decision are related to how managed the assets of the company, it includes the amount of assets and composition, these decision are a cost and in a limited quantity.
Answer:
Municipal bond
Explanation:
We can clearly find out which bond to select by finding their equivalent taxable yield.
DATA
Coupon rate (corporate bond) = 6.25%
Coupon rate (municipal bond) = 4.75%
Marginal income tax = 28%
Equivalent taxable yield of municipal bond = coupon / (1-tax rate)
Equivalent taxable yield of municipal bond = 4.75% / (1-0.28)
Equivalent taxable yield of municipal bond = 6.6%
Hence municipal bond must be selected having a higher equivalent taxable yield as compared to corporate bond.
