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Lelechka [254]
3 years ago
8

. Brown Office Supplies recently reported $18,500 of sales, $8,250 of operating costs other than depreciation, and $1,750 of dep

reciation. It had $9,000 of bonds outstanding that carry a 7.0% interest rate, and its federal-plus-state income tax rate was 40%. How much was the firm's earnings before taxes (EBT)?(A) $5,981(B) $7,398(C) $7,870(D) $5,903(E) $6,217
Business
1 answer:
Degger [83]3 years ago
5 0

Answer:

Option (C) is correct.

Explanation:

EBT means Earnings Before Tax, so you ignore the tax rate for this problem.

Then solve for the EBT figure.

EBT:

= Revenue - Operating costs - Depreciation  - interest

= $18,500 - $8,250 -  $1,750 -  ($9,000 x 7%)

= $18,500 - $8,250 -  $1,750 -  $630

= $7,870

Therefore, $7,870  was the firm's earnings before taxes (EBT).

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There is an inverse relationship between bonds' quality ratings and their required rates of return. Thus, the required return is
iragen [17]

Answer:

True

Explanation:

Investors are risk adverse, that means that under normal conditions if they have to choose between two securities that yield the same rate of return, they will always choose the less risky.

That means that riskier securities must yield higher rates of return to compensate for the higher risk.

3 0
4 years ago
ISO 9000 is a certification program attesting that a factory, laboratory, or office has met the rigorous requirements set by the
Semenov [28]

Answer:

True.

Explanation:

ISO 9000 is a certification program attesting that a factory, laboratory, or office has met the rigorous requirements set by the International Organization for Standardization.

Basically, the ISO 9000 is a tripartite continuous process that involves planning, controlling and documentation of quality in a business firm or organization.

This ultimately implies that, the ISO 9000 is a set of standards that typically guides an organization in ensuring that they meet both the stakeholders and consumer requirements or needs with respect to their products and services under statutory and regulatory requirements at a specific period of time.

7 0
3 years ago
Monopolies, oligopolies, and monopolistic competitive industries all A) earn positive profits in the long run. B) have market po
iris [78.8K]

Answer: Option (A) is correct.

Explanation:

Correct option: Earn positive profits in the long run.

All the industries that operates in a monopoly, oligopoly and monopolistic market conditions are generally having positive profits in the long run.

These industries can earn positive profits because there are high restrictions on the entry of the new firms. This is the case of monopoly and oligopoly. But in monopolistic competition, there are many firms in the market and the firms in this market condition can have a positive profits in the long run. There are comparatively less barriers on the entry of the new firms.

7 0
4 years ago
This isn't a question!
RSB [31]

Answer:

Thank you for the brainly please make brainliest I answer lots of questions when i have time

Explanation:

6 0
3 years ago
Assume the market basket for the consumer price index has two productsmeat and potatoeswith the following values in 2013 and 202
amm1812

Assume the market basket for the consumer price index has two products meat and potatoes, the Consumer Price Index for 2016 equals option c. 129.

<h3>What is meant by the term of consumer Price Index?</h3>

The consumer price index (CPI) is known to be a term that connote the instrument that is often used in the measurement of inflation.

It is said to be one that is often used so that one can be able to estimate the average variation that tend to exist  between two given periods in the prices of products which are known to be consumed by households.

Therefore, based on the image attached, Assume the market basket for the consumer price index has two products meat and potatoes, the Consumer Price Index for 2016 equals option c. 129.

Learn more about consumer price from

brainly.com/question/1889164

#SPJ4

6 0
2 years ago
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