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Damm [24]
3 years ago
12

Helpful in assessing the risk of lending to investors for particular projects, which of the following calculations measures the

income-producing ability of the property to meet operating and financial obligations?
A. Profitability ratios
B. Income multipliers
C. Financial risk ratios
D. Income tax multipliers
Business
2 answers:
Degger [83]3 years ago
7 0

Answer:

C. Financial risk ratios

Explanation:

Financial risk ratios are calculated to measure the financial risk of the company. It measure the financial capability of an entity. For lending purpose the lender has to ensure that is the borrower able to repay the borrowed amount and interest on it. The lender need to estimate the capability of the borrower for payment of loan back. These ratio care Debt to capital ratio, Coverage ratio etc.  

allochka39001 [22]3 years ago
4 0

Answer:

The income-producing ability of a company is determined by calculating the Profitability ratios.

These ratios calculate the ability of a company to produce income and turn the income into profits and added value for shareholders.  A company can meet operating and financial obligations only if it generates enough income in excess of its expenses.

The bases for calculating profitability ratios are revenue, operating costs, assets, and equity.

Profitability ratios are grouped into two classes: Margin Ratios and Return Ratios.

Explanation:

The Margin Ratios measure the company's ability to turn sales into a profit.  They include Gross Margin Ratio and Net Income Ratio.  They are expressed as a percentage of Sales or Cost of Goods Sold.

Return Ratios measure a firm's ability to add value for shareholders.  They include Return on Assets and Return on Equity, among other variants.

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Suppose that a firm produces 10 units of output. Its Average Variable Cost (AVC) = $25, Average Fixed Cost (AFC) = $5, and Margi
Andreyy89

Answer:

Total Cost  = $300

Average Total Cost = $30  

correct option is a.) Total cost is $300

Explanation:

given data

produces output = 10 units

Marginal Cost = $30

Average Variable Cost = $25

Average Fixed Cost = $5

solution

first we get here total cost that is

Total Cost = Total Variable Cost + Total Fixed Cost    .................................1

so here Total Variable Cost = Average Variable Cost × Output    

Total Variable Cost = $25 ×  10

Total Variable Cost =  $250

and total fix cost is = Average Fixed Cost × Output

total fix cost = $5 × 10 =

total fix cost = $50

so Total Cost is here

Total Cost  = $250 + $50

Total Cost  = $300

A) is correct

and

Average Total Cost will be

Average Total Cost = \frac{total\ cost}{out\ put}    ...................2

Average Total Cost = \frac{300}{10} = $30

Average Total Cost = $30  

3 0
3 years ago
Allen Lumber Company had earnings after taxes of $750,000 in the year 2015 with 300,000 shares outstanding on December 31, 2015.
GarryVolchara [31]

Answer:

Earning per share for the year 2016 is $2.68

Explanation:

For computing the earning per share, we have to use the formula of earning per share which is shown below:

= Net income ÷ total number of outstanding shares

where,

Net income is $937,500

And, the total number of outstanding shares equals to

= 2015 shares + 2016 shares

= 300,000 + 50,000

= 350,000

Now put these values to the above formula

So, the earning per share would be equals to

= $937,500  ÷ 350,000 shares

= $2.68

The earning after tax is not considered. Thus, it is ignored.

Hence, earning per share for the year 2016 is $2.68

4 0
3 years ago
Bessie is at the grocery store and is trying to remember some of the things she needs to buy. She is in the cleaning products ai
Anna007 [38]

Answer: Actual state

Explanation: In simple words, The actual state refers to the way in which a rational consumer actually satisfies his or her needs and wants.

In the given case, Bessie is sure that she has the same product left at home however she does not have any proof. Bessie decides to not purchase the good she already has one, thus, despite of not having a proof she decides to satisfy her wants by not purchasing the bottle.

Hence the correct option is C .

7 0
3 years ago
Job descriptions often include the following information related to the job
Vilka [71]

Resume, school transcript, professional certifications, awards, memberships in professional organizations. Letters of recommendation, "thank you" notes, newspaper/website articles about you.

7 0
2 years ago
Sarah purchased a stock one year ago at a price of $32 a share. In the past year, she has received four quarterly dividends of $
alexdok [17]

Answer:

$6.

Explanation:

Holding stock of a Public company entitles you to a potential return on your investment which can be in the form of Capital Appreciation/Gain, that is buying at low and selling at high, or Dividends received. In the given question, we are not required to calculate total return rather capital gain, simply the difference between purchase price and selling price, so there is no need to account for dividends. The formula for Capital Gain is given below:

                Capital Gain / Appreciation = Selling Price - Purchase Price

⇒ Capital Gain = 38 - 32 = $6.

7 0
3 years ago
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