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Inessa [10]
3 years ago
12

Manufacturer's Inc. estimates that its interest charges for this year will be $700 and that its net income will be $3,000. Assum

ing its average tax rate is 30 percent, what is the company's estimated times-interest-earned ratio?
Business
1 answer:
just olya [345]3 years ago
7 0

Answer:

TIE = 4,985.71

Explanation:

TIE = \frac{EBIT}{interest \: expense}

net income / (1 - tax-rate) = Earnings before taxes

3,000 / 0.7 = 4,285.71

Earnigns before taxes + interest = EBIT (earnings before interest and taxes)

4,285.71 + 700 = 4,985.71

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Coyne Corporation is evaluating a capital investment opportunity. This project would require an initial investment of $30,000 to
postnew [5]

Answer:

A. $41,120.

Explanation:

Year    Description          Cash flow           Present [email protected]%

0       Equipment cost      ($30,000)                    ($30,000)

1-4      Additional CF           $24,000                    $69,929.10

4        Residual value            $2,000                       $1,184.16

Present value total                                                 $41,113.26

Based on the above calculation, the answer shall be A. $41,120.

8 0
4 years ago
the biggest challenge facing the growth of new franchises is: A) market saturation B)competition from independent entrepreneurs
Furkat [3]

Answer:

(A) market saturation

Explanation:

A franchisee starts a new franchise by entering into a franchising agreement with a franchiser to use its brand name and sell its products. The biggest challenge faced by this new franchise is market saturation.

This occurs because<u> the presence of other similar businesses, whether franchises or independently owned businesses in the market, creates lots of competition for the new franchise.</u>

6 0
3 years ago
A cell phone provider charges felicia $50 per month for her plan plus $0.05 per min of long distance calls.if felicia wants to k
Sunny_sXe [5.5K]
$0.05m + $50>55

0.05 per minute plus $50 per month for the plan less than $55
7 0
3 years ago
The law of demand states that, other things equal, when the price of a good.
babunello [35]

The law of demand states that when the price of a good increases, the quantity demanded decreases.

<h3>What is the law of demand?</h3>

The law of demand states that the higher the price, the lower the quantity demanded and the lower the price, the higher the quantity demanded. The quantity demanded of a good is inversely related to the price of the good. This explains why the demand curve is downward sloping.

For example, if the price of a shoe increases, the quantity demanded of the good decreases.

For more information about demand, please check: brainly.com/question/25871620

4 0
2 years ago
A self-employed person deposits $2,000 annually in a retirement account (called a Keogh or H.R. 10 plan) that earns 8 percent. U
lana [24]

Answer:

$146,212.00  

Explanation:

PMT which is the annual savings is $2000

Rate  is 8%

The annual savings would last for 25 years(65-40)

FVIFA FACTOR=(1+r)^n-1/r

r=8%

n=25

FVIFA FACTOR=(1+8%)^25-1/8%

FVIFA FACTOR=(1.08)^25-1/0.08

FVIFA FACTOR=(6.848475196-1)/0.08=73.106

Amount in the account at retirement=PMT*FVIFA FACTOR

Amount in the account at retirement=$2000*73.106=$146,212.00  

6 0
3 years ago
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