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aleksklad [387]
3 years ago
10

In a recent year Bonita Industries had net income of $130000, interest expense of $50000, and income tax expense of $21000. What

was Bonita Industries’s times interest earned for the year? a. 2.60 b. 4.02 c. 3.60 d. 3.02
Business
1 answer:
denis-greek [22]3 years ago
4 0

Answer:

b. 4.02

Explanation:

Time interest earned is actually tells us how many times it's interest is the company earning so that formula for times interest earned is

Earnings before income and tax/Interest expense.

So we have to add interest expense and tax expense back to net income.

130,000+50,000+21,000=201,000

201,000/50,000=4.02

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The present value of a zero-interest-bearing note given for property, goods, or services should be measured by A : using the pri
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I think the answer is A. I THINK the answer is A
8 0
3 years ago
Assume the world market for oil is competitive and that the marginal cost of producing​ (extracting and bringing to​ market) ano
xz_007 [3.2K]

Answer:

The economic surplus will decrease by $2.20

Explanation:

$81.40 and $79.20 are <em>marginal </em>cost and benefit, which are the changes to total costs and total benefits due to producing and consuming one additional barrel of oil.

They can be used to calculate <em>change </em>to economic surplus, which is the change to the net economic value received by society, which is given by:

marginal benefit - marginal cost = $79.20 - $81.40 = - $2.20

7 0
3 years ago
Suppose the benefit of owning a painting, in terms of your personal enjoyment, is worth 5% of the value of the painting. If the
Julli [10]

Answer:

7%

Explanation:

It would grow by 7% each year which is the rate of return on stocks

4 0
3 years ago
Problem 6-3 Future Value and Multiple Cash Flows [LO1] Fuente, Inc., has identified an investment project with the following cas
Vikki [24]

Answer:

Year 1 = $1,100

Year 2 = $1,330

Year 3 = $1,550

Year 4 = $2,290

(a) If the discount rate is 6 percent, then the future value of these cash flows in Year 4:

To solve this problem, we must find the FV of each cash flow and add them. To find the FV of a lump sum, we use:

FV=P(1+r)^{t}

FV=1,100(1.06)^{3} +1,330(1.06)^{2} +1,550(1.06)+2,290

= $6737.51

(b)  If the discount rate is 14 percent, then the future value of these cash flows in Year 4:

FV=1,100(1.14)^{3} +1,330(1.14)^{2} +1,550(1.14)+2,290

= $7415.17

(c) If the discount rate is 21 percent, then the future value of these cash flows in Year 4:

FV=1,100(1.21)^{3} +1,330(1.21)^{2} +1,550(1.21)+2,290

= $8061.47

8 0
3 years ago
ames Sprater of Grand Junction, Colorado, has been shopping for a loan to buy a used car. He wants to borrow $18,000 for four or
Ghella [55]

Answer:

James' credit union loan rate is 8.88% APR, the local bank loan rate is 9.34% APR.

Explanation:

Hi, since in both cases payments would be done in a monthly basis, we have to assume that the rate that we are looking for is APR (compounded monthly), and since there is no additional information in regards that 9.25% rate, we can assume that this is effective annually, so let´s convert this effective monthly rate into APR (compounded monthly)

First, we have to convert it into an effective monthly rate, that is:

r(month)=((1+r(annual))^{\frac{1}{12} } -1)

r(month)=((1+0.0925)^{\frac{1}{12} } -1)=0.00739963

Then we multiply by 12 and we get  0,088796 , which is 8.88% APR (compounded monthly)

This way James can compare both credits. The cheaper loan is from the credit union.

4 0
3 years ago
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