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stealth61 [152]
2 years ago
10

You would like to borrow money three years from now to build a new building. In preparation for applying for that loan, you are

in the process of developing target ratios for your firm. Which set of ratios represents the best target mix considering that you want to obtain outside financing in the relatively near future?A) Times interest earned = 1.7; debt-equity ratio = 1.6; B) Times interest earned = 1.5; debt-equity ratio = 1.2; C) Cash coverage ratio = 0.8; debt-equity ratio = 0.8: D) Cash coverage ratio = 2.6; debt-equity ratio = 0.3: E) Cash coverage ratio = 0.5; total debt ratio = 0.2
Business
1 answer:
zysi [14]2 years ago
5 0

Answer:

Option "D" is the correct answer to the following statement.

Explanation:

The cash coverage ratio helps find the available cash in hand or cash at the bank to pay for the expenditure of a loan. The ratio must be considerably higher to 1: 1, it shows our potential to pay interest. In this situation Option "D" has the highest Cash coverage ratio.

The debt-equity ratio is used to find the firm's credibility.

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the true statement from the list below, regarding the Contribution Format Income statement. Multiple Choice The Contribution For
Alex Ar [27]

Answer:

The Contribution Format Income Statement is utilized for internal decision-making purposes.

Explanation:

The contribution format income statement is a most and useful tool for the planning and decision-making as it represents the revenue that is produced after subtracting the variable and fixed expenses. So it would be utilized for the decision-making motive for internal.

5 0
2 years ago
A new manager has been in their role for three months. They take time each day to get to know and socialize with their team, and
Len [333]

Answer:

Relationship oriented

Explanation:

Relationship oriented leadership is one that is based based mainly on interaction with people. Such leaders are mentors to their subordinates and get feedback from their reports are incorporated into the decisions they make.

They create a positive work environment and enjoyable.

In this instance the manager takes time each day to get to know and socialize with the team, and often meets with employees to discuss various challenges they are facing.

However as efficiency is down and deadlines are not met. The manager is taking a disproportionate relationship oriented leadership style, and he needs to be autocratic and enforce initiatives to improve efficiency and make them meet deadlines.

3 0
3 years ago
Read 2 more answers
A firm just paid a dividend of $6 per share. Next year the dividend is expected to grow 8 percent, thereafter 10 percent forever
lawyer [7]

Answer:

26%

Explanation:

MV=Do(1+g)/(Ke-g)

Where MV is market value=$36

Do is current dividend per share=$6

g is growth rate=8%

Ke=?  

By putting above values we get;

36=6(1+.08)/(Ke-.08)

36Ke-2.88=6+.48

36Ke=2.88+6+.48

Ke=9.36/36

Ke=26%

3 0
3 years ago
Give your analysis about investment based on:
tigry1 [53]
a guyssssssssssssssssssssssssssssssssssss
8 0
3 years ago
The purpose of a(n) _____ is to obtain additional information on a candidate and to clarify information gathered throughout the
mario62 [17]

Answer: interview

Explanation:

During interview, a candidate is able to talk extensively about himself and achievements. By this, he is able to clarify a lot of things about himself

7 0
3 years ago
Read 2 more answers
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