Answer:
5
Explanation:
The formula to compute the interest coverage ratio is shown below:
= (Earning before tax + interest expense) ÷ (interest expense)
where,
Earning before tax equal to
= Net income ÷ (1 - tax rate)
= $120 ÷ (1 - 0.40)
= $200
And interest expense is $50
So, the interest coverage ratio equal to
= ($200 + $50) ÷ ($50)
= 5
Answer:
Upward communication
Explanation:
Based on this information it can be said that this is an example of Upward communication. This is a form of communication that encourages employees to communicate directly with their upper management in order to create a sense of importance in employees as they begin to realize that the upper management cares about their thoughts and input. Which is what Steve is cultivating by having regular check-ins
Answer:
Price of stock = $40
Explanation:
According to the dividend growth model, the price of a stock is the present value of expected dividend discounted at the required rate of return.
This is done as follows:
Price of a stock = D×(1+r)/(r-g)
D(1+g) - Dividend for next year = 100%-40%× $3 = $1.8
g- growth rate - 10%
r- required rate of return - 15%
Price of stock = 1.8× (1.1)/(0.15-0.1)
= $40
Answer:
Subtracting the base period amount from the analysis period amount, dividing the result by the base period amount, and then multiplying that amount by 100.
Explanation:
Financial accounting is an accounting technique used for analyzing, summarizing and reporting of financial transactions like sales costs, purchase costs, payables and receivables of an organization using standard financial guidelines such as Generally Accepted Accounting Principles (GAAP) and financial accounting standards board (FASB). It can be defined as the field of accounting involving specific processes such as recording, summarizing, analysis and reporting of financial transactions with respect to business operations over a specific period of time. Financial experts or accountant uses either the cash basis or accrual basis of accounting.
There are two (2) main methods used in financial accounting for analyzing financial statements and these are;
I. Vertical analysis.
II. Horizontal analysis.
Horizontal analysis compares historical financial informations over a number of reporting periods.
In horizontal analysis the percent change is computed by subtracting the base period amount from the analysis period amount, dividing the result by the base period amount, and then multiplying that amount by 100.
Management moving production or other parts of the company's value chain to countries where wages are lower is an example of cost drivers.
<h3>What are cost drivers in business?</h3>
The cost drivers can be defined to be the direct cause of the expenses that may occur in a business. These are the activities that may cause a cost to happen in the business. For instance this could be the amount of water that is used monthly in a given area.
Hence we can say that management moving production or other parts of the company's value chain to countries where wages are lower is an example of cost drivers.
Read more on cost drivers here: brainly.com/question/14904453
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