1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
lions [1.4K]
3 years ago
6

When using the book value of equity, the debt to equity ratio for Luther in 2018 is closest to: A) 0.43 B) 2.29 C) 2.98 D) 3.57

Business
1 answer:
ikadub [295]3 years ago
6 0

Answer:

The correct answer is 2.29

Explanation:

The debt-to-capital ratio (D/E) is a measurement of a company's financial leverage.

D/E=Total debt/Total equity

Total debt=(notes payable (10.5) + current maturities of long-term debt (39.9) + long-term debt (239.7) = 290.1

Total Equity = 126.6

D/E= 290.1/126.6=2.29

Thus, the debt to equity ratio for Luther in 2018 is closest to 2.29

You might be interested in
2. If the government decided to subsidize the production of a good, the result would be a decrease in the equilibrium price and
kogti [31]

Answer: True

Explanation:

The subsidy will increase the supply of the good, and therefore the supply curve will shift to the right. Then its intersection with the demand curve will be located at a lower price and with a larger quantity.

5 0
3 years ago
In the simplified model with proportional taxation introduced at the end of chapter 5, there can be two equilibria, one with a h
Radda [10]

Answer:

answer is given below

Explanation:

Equilibria with high tax rate.

  • In the high balance tax system, taxes are already high. Make government spending and revenue sources mandatory. and Tax rates decrease.
  • The income effect leads to an increase in both consumption and leisure, but when the alternative effect is taken into account, higher costs lead to greater employment and greater consumption but leave the party on leave.
  • Tax base witnesses grow. Output increases but relaxation decreases.

Equilibria with low tax rate:

  • An increase in government spending leads to an increase in tax rates to increase income sources.
  • The increase in taxes leads to a decline in consumption and production.
  • Therefore, the amount of time spent at rest will increase.
3 0
3 years ago
(tco 3) techpoint, a technical writing and business documentation firm, finds it difficult to handle its training requirements.
kotykmax [81]

<u>This is an example of "outsourcing".</u>


Outsourcing is the business routine with regards to procuring a gathering outside an organization to perform benefits and make products that generally were performed in-house by the organization's own representatives and staff. Generally done as a cost-cutting measure, it can influence occupations going from client support to assembling to the back office.  

Outsourcing can enable organizations to lessen work costs essentially by outsourcing certain assignments. Organizations can likewise dodge costs related with overhead, gear and innovation.  

4 0
4 years ago
Marian wants to know exactly what her mortgage payments will be each month. Which type of mortgage would be her best choice?
AVprozaik [17]
Her better choice is going to be the second ond
8 0
3 years ago
Read 2 more answers
Which statement reports the changes in shareholders' equity during the period that were not a result of transactions by owners.
guajiro [1.7K]

Answer:

the statement of comprehensive income

Explanation:

The statement of comprehensive income refers to a summary in which the net assets are to be recognized for a particular period of time. It shows the adjustments made to the equity that would be highlighted also. Plus the net income could be determined by preparing an income statement

Therefore in the given case, the changes that are made in the stockholder equity would be come under the comprehensive income statement and the same is to be considered

3 0
4 years ago
Other questions:
  • Scenario 1: Individual Retirement Accounts (IRAs) allow people to shelter some of their income from taxation. Suppose the maximu
    8·1 answer
  • Each firm in a competitive market has a cost function​ of: Upper C equals 49 plus q squared​, so its marginal cost function is M
    8·1 answer
  • What is a corporation?
    6·2 answers
  • Dante, an operations manager at Therma-Pro Insulation, has been put on a big project with a tight deadline. He distributes half
    13·1 answer
  • Cash flows It is typical for Jane to​ plan, monitor, and assess her financial position using cash flows over a given​ period, ty
    9·1 answer
  • What is accounting ?​
    14·1 answer
  • You have just deposited $8,500 into an account that promises to pay you an annual interest rate of 6 percent each year for the n
    9·1 answer
  • Which of the following is true about obtaining a credit card?
    11·1 answer
  • The weighted-average cost of capital for a firm with a 65/35 debt/equity split, 8% pre-tax cost of debt, 15% cost of equity, and
    6·1 answer
  • Economic growth and public policy
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!