All categories

3 years ago

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

You might be interested in

Suppose Cook Plus manufactures cast iron skillets. One model is a 10-inch skillet that sells for $ 22. Cook Plus projects sales

amid [387]

Answer:

Production budget = 835

Explanation:

<em>T</em><em>he production budgeted for a particular period is the expected units to be produced after adjusting the sales budget figures for opening and closing inventories. </em>

Production = Sales budget + closing inventory - opening inventory

Inventory at the end of July = 40%×650= 260

Opening inventory = 75

Sales budget = 650

Production budget = 650+ 260 - 75= 835

Production budget = 835

3 0

3 years ago

An increase in the money supply causes

Murljashka [212]

Answer:

Inflationary Pressure

Explanation:

Inflationary pressures are the underlying causes of inflation. These pressures are the reason that the production of goods increases to meet or exceed consumer demand or that prices increase due to lack of supply. Inflationary pressures cause the economy to adjust as a result of supply and demand.

6 0

2 years ago

In order to make sure that audiences can correctly identify which words you are using, it is necessary to make sure you have cor

Vladimir [108]

In order to make sure that audiences can correctly identify which words you are using, it is necessary to make sure you have correct Pronunciation.

8 0

3 years ago

Read 2 more answers

Oh no! You bounced a check. You must pay _____________, fill in the blank, to the business you wrote the original check to.

Marina CMI [18]

Answer:

bank fees

Explanation:

3 0

2 years ago

A company's issued share capital throughout an accounting period consists of 500,000 common shares of 20 cent each and 100,000 p

ella [17]

Answer:

a. $0.30

Explanation:

Basic Earning Per Share (BEPS) = Earnings Attributable to Holders of Common Stock ÷ Weighted Average Number of Common Stock.

Earnings Attributable to Holders of Common Stock calculation :

Net income after tax for the period $160,000

Less Preference Dividend ($10,000)

Earnings Attributable to Holders of Common Stock $150,000

Weighted Average Number of Common Stock calculation :

Outstanding common shares 500,000

Therefore,

Basic Earning Per Share (BEPS) = $150,000 ÷ 500,000

= $0.30

7 0

3 years ago