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GaryK [48]
3 years ago
6

Companies HD and LD have the same sales, tax rate, interest rate and their debt, total assets, and basic earning power. Both com

panies have positive net income. Company HD has a higher debt ratio and, therefore, a higher interest expense. Which of the following statements is correct?
a) Company HD pays less in taxes.
b) Company HD has lower equity multiplier.
c) Company has a higher ROA.
d) Company HD has a higher times-interest-earned (TIE) ratio.
e) Company HD has mor
Business
1 answer:
stiks02 [169]3 years ago
3 0

Answer:

A) company HD pays less in Tax

Explanation:

Because interest is deducted before tax in income statement. Higher interest means less Earning before tax, and less amount of Tax be deducted.

HD and LD both have same Earning before interest and tax.

Let suppose both have  EBIT of $1000,

Not HD has interest expense of 150, and LD has interest expense of $100

Now HD Earning before tax would be 850, and LD EBT would be 900.

Let's say tax is 40%

so,

HD tax would be 850*0.4=340

LD tax would be 900*0.4=360

So, HD pays higher interest, it benefit company in paying lower tax amount. bacause interest is tax saving.

HD saves $20 in this hypothetical example.

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"On average, a customer waits 8 minutes in a queue and customers arrive at a rate of 15 per hour. What is the average number of
mote1985 [20]

Answer:

The Answer is A) 2

Explanation:

Drawing details from the question, the formula for calculating Average Waiting Time under the Single -Server Queue Model is given as:

Average  Waiting Time = <u>(Average No of customers waiting in line</u>)  

                                                                        λ

> λ is a mathematical symbol pronounced Lambda and here refers to <em>Rate of Arrival.</em>

> We have Average Waiting Time = 8

> We have λ (Average Rate of Arrival) = 15 People every hour (that is 60 Minutes)

> that is 15/60= 0.25

Therefore λ = 0.25

> Lets assume that Average No. of Customers Waiting in Line is C

Our formula (by substituting the various factors above now becomes

8 = C/0.25

                             

To get, we cross multiply. So we have:

C = 8 x 0.25

C = 2 thefore the Average No. of Customers waiting according to the single-server queue model given the above conditions is 2.

Cheers!

6 0
3 years ago
Global companies have five strategies for matching products and their promotion efforts to global markets. Changing a product in
chubhunter [2.5K]

Answer:

As given as below.

Explanation:

  • The global companies have some production strategies that make an appropriate for the country climate or presences such as the  
  1. uniformity in the brand names
  2. An identical packaging of similar products .
  3. The standardized advertising messages .
  4. synchronized pricings .
  5. coordinated of the product launches .
  6. The harmonious sales campaigns
  • Based on these strategies, the matching products, and their promotion efforts are made in some way or the other that makes it appropriate for the climate of the place and the territorial of the country.
  • It has certain advantages like the lower the marketing costs , and also power and scope , consistency in the brand image  and defining the ability to leverage ideas quickly and efficiently , uniformity of the marketing practices , also helps to establish relationships outside of the strategy.
5 0
3 years ago
Assume Sheryl Jenkins wants to accumulate $ 13,241.39 in two years. She currently has $ 10,621.36 to invest. What interest rate
WITCHER [35]

Answer: 11.65%

Explanation:

The $13,241.39 is a future value amount as it is what is to be accumulated in 2 years.

Future value formula therefore applies:

Future value = Current value * ( 1 + interest rate) ^ no. of years

13,241.39 = 10,621.36 * ( 1 + i) ²

(1 + i)² = 13,241.39 / 10,621.36

(1 + i)² = 1.24667556697

1 + i = √1.24667556697

i = 1.116546267 - 1

i = 11.65%

8 0
3 years ago
uppose the Social Security payroll tax were increased today to 16.4 percent in order to solve the 75-year fiscal imbalance in th
dexar [7]

Answer:

Ideally, the amount of the social security payout depends on the average lifetime earning of the residents of the country. The government averages the earning and then finalizes on the amount to be paid by each of the resident. If the payroll tax increases, in the longer run a few workers will get affected but, in the short run the increase has its immediate effect on 92% of the workers. Out of the 92%, 78% have a phase out option whereas 48% of them are under the as-needed scenario.

But, the longer a rate increase is delayed, the higher the increase in lifetime taxes for later generations. Workers born1936–1990 would have higher increases in lifetime taxes under an immediate rate rise, workers born 1996–2005 would generally have higher increases in lifetime taxes under phased increases, and workers born 2006–2015 would have higher increases in lifetime taxes under as-needed increases. The future workers would experience the smallest tax increases under the immediate option. Lifetime taxes for workers born 2011–2015 would rise 16 percent under an immediate increase, 27 percent under phased increases, and 33 percent under as-needed increases.

Thus,The increase in the payroll taxes will increase the cost for the people at different income level, as it is calculated on the basis of the income of the individual. As the women are paid lesser than their male counterparts, it can be said that the male population will be affected more by the increase in the social security payout.

Explanation:

3 0
4 years ago
Amanda doesn't know how the CSR initiative should be<br> communicated. What do you advise?
Maru [420]

<u>Explanation:</u>

CSR initiative has to be communicated to the employees. As the cafe has permanent workers and part timers. Communication gap may arise as part timers work only a few hours a week they might not be informed which decreases their opportunity of joining the other team members in CSR activity.

Communication can be through word of mouth which spreads over a time and people show interest. Posters can be done with employees performing their volunteer activities that is a better way of communication. Posters can be pasted in cafe walls so the customers will know.

One of the fastest mode of sharing communication is social media. The CSR activities done so far by the firm can be posted in social media and it reaches a wider group of audience.

5 0
4 years ago
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