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4 years ago

Which of the following ratios use de-levered net income?

Business

1 answer:

ivann1987 [24]4 years ago

3 0

Answer:

c. Return on Assets

Explanation:

The net income usually has an impact of interest expense since interest expense is deducted from earnings before interest and tax in arriving at net income.

Hence, in order to take out the impact interest expense when computing return on assets, an adjusted net income known as de-levered net income is computed using the below formula:

Net Income + (1-t)xInterestExpense

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_____ occurs when the amount of of capital per worker increases

katrin2010 [14]

<span>Gross domestic product </span>occurs when the amount of of capital per worker increases. The answer is letter A

3 0

3 years ago

Read 2 more answers

On January 1, 2021, the Allegheny Corporation purchased equipment for $115,000. The estimated service life of the equipment is 1

Mazyrski [523]

Answer:

1. $11,000 each year

2. $23,000 and $18,400

3. $15,000 and $12,500

Explanation:

The calculation of the depreciation expense for the 2021 and 2022 is shown below:

1. Straight-line method:

= (Purchase value of equipment - estimated residual value) ÷ (estimated service life)

= ($115,000 - $5,000) ÷ (10 years)

= ($110,000) ÷ (10 years)

= $11,000

In this method, the depreciation is same for all the remaining useful life i.e for 2021 also the same depreciation is applied i.e $11,000

2. Double-declining balance method:

First we have to determine the depreciation rate which is

= One ÷ estimated service life

= 1 ÷ 10

= 10%

Now the rate is double So, 20%

In year 1, the original cost is $115,000, so the depreciation is $23,000 after applying the 20% depreciation rate

And, in year 2, the $(115,000 - $23,000) × 20% = $18,400

3. Units-of-production method:

= (Purchase value of equipment - estimated residual value) ÷ (estimated production units)

= ($115,000 - $5,000) ÷ ($220,000 units)

= ($110,000) ÷ (220,000 units)

= $0.5 per units

For 2021, it would be

= Production units in 2021 year × depreciation per unit

= 30,000 units × $0.5

= $15,000

Now for the 2022, it would be

= Production units in 2022 year × depreciation per unit

= 25,000 units × $0.5

= $12,500

4 0

3 years ago

What is the main difference between whole life insurance and term life insurance?

Stella [2.4K]

Whole life insurance is a type of program that you pay for your "whole life." The premiums tend to stay level on whole life policies.

On the other hand, term life insurance gradually gets more expensive as you get older. Term life insurance is simply the pure cost of insurance with no savings element.

8 0

3 years ago

You decide to purchase an equal number of shares of stocks of firms to create a portfolio. If you wished to construct an index t

Bond [772]

Answer:

Price weighted index

Explanation:

A price weighted index is an index used in stocks where each company that is part of the index makes up a fraction of the total, and is proportional to its price per share.

Higher weight is given to sticks that have higher prices.

Rice weighted index is a good way to track track portfolio performance that best match for your portfolio.

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3 years ago

What should you do to elicit the most useful data in your interviews? Ask primarily yes-or-no questions. Ask leading and ambiguo

grin007 [14]

Answer:

Make your questions objective and friendly.

Explanation:

An interview is an essential step in the process of selecting a candidate to fill a position in a company.

Through the interview, verbal and non-verbal data are collected that will help in the relationship between the profile of the interviewed candidate and the profile expected to fill the vacancy.

It is important that the interviewer uses some techniques to make the interview flow effectively, the first of which is to maintain a friendly posture, as it is common for candidates for an interview to feel intimidated or anxious due to the selection process.

It is also essential that the questions are objective and honest, so that there is a correct understanding and the candidate can answer correctly and effectively.

And the interview should be a step that does not cause intimidation and lack of ethics on both sides, it is ideal that the candidate feels motivated to ask relevant questions to answer their doubts, and that the interviewer conducts the interview schedule in an effective way.

5 0

3 years ago