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rusak2 [61]
3 years ago
9

Emma's Electronics Incorporated has total assets of ​$63 million and total debt of ​$39 million. The company also has operating

profits of ​$23 million with interest expenses of ​$6 million
a. What is Ellie's debt ratio?

b. What is Ellie's times interest earned?

c. Based on the information above, would you recommend to Ellie's management that the firm is in a strong enough position to assume more debt and increase interest expense to $7 million.
Business
1 answer:
Annette [7]3 years ago
6 0

Answer:

(a) 62%

(b) 3.83 times

(c) Yes

Explanation:

(a) Ellie's debt ratio:

= Total Debt ÷ Total assets

= $39 million ÷ $63 million

= 0.62 or 62%

(b) Ellie's times interest earned ratio:

= Interest ÷ EBIT

= $23 million ÷ ​$6 million

= 3.83 times

(c) Yes, it has enough times interest ratio.

If Interest expenses increased to $7 Million, then

Company could easily raise more debt to finance additional funding needs.

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A feasibility study is aimed primarily at __________.
swat32

Answer:

accessing the viability of a business

Explanation:

Feasibility study is an evaluation that is carried out on a proposed business venture in order to ascertain the viability of the business.   feasibility study helps to understand the positive and negative effects of the proposed business and prepare ones mind against any future risks that might want to arise. The feasibility study is aimed primarily at accessing the viability of a business

8 0
3 years ago
A person whose license has been cancelled or revoked, whether by voluntary action or by disciplinary action of the Board, may af
butalik [34]

Answer:

The appropriate fill-in-the-blank is 05 years. Thus the statement becomes

A person whose license has been cancelled or revoked, whether by voluntary action or by disciplinary action of the Board, may after <u>05</u> years from the effective date of such cancellation or revocation, petition the Board for reinstatement of the license, unless another time is provided in the cancellation or revocation order, or unless no provision was made in the order for reinstatement. This section does not apply to licensees who let their licenses lapse for non-payment of renewal fees or licensees against whom a cancellation or revocation proceeding is not pending before the Board or in any other jurisdiction.

Explanation:

According to the KRS 335.360, A person whose license has been revoked is eligible to apply for reinstatement after 05 years.

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3 years ago
__________ is also called back-office processes, these are invisible to the external customer but essential to the effective man
mrs_skeptik [129]

Answer:

The correct word for the blank space is: Business-facing processes.

Explanation:

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