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Klio2033 [76]
3 years ago
11

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

Business
1 answer:
ivann1987 [24]3 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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Vandel Inc. bases its selling and administrative expense budget on budgeted unit sales. The sales budget shows 5,900 units are p
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Given:

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Therefore, we'll compute cash disbursements for selling and administrative expenses using the following formula:

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94. Averaging the deviations from the mean for a portfolio of securities will: A. compute the standard deviation. B. compute the
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