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zysi [14]
3 years ago
13

g Kaye's Kitchenware has a market/book ratio equal to 1. Its stock price is $12 per share and it has 5.2 million shares outstand

ing. The firm's total capital is $120 million and it finances with only debt and common equity. What is its debt-to-capital ratio? Round your answer to two decimal places.
Business
1 answer:
Ede4ka [16]3 years ago
7 0

Answer:

48.00%

Explanation:

For computing the debt to capital ratio, first we have to determine the equity value and debt value which is shown below:

Equity value = Number of outstanding shares × stock price per share

                    = 5.2 million shares × $12

                    = $62.4 million

We know,

Total capital = Debt + equity

$120 million = Debt + $62.4 million

So, the debt would be

= $120 million - $62.4 million

= $57.6 million

Now the debt to capital ratio would be

= $57.6 million ÷ $120 million

= 48.00%

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Which of the following describes an inferior​ good? A. When consumer income​ increases, the demand for tea increases. B. When co
MakcuM [25]

Answer:

C. When consumer income​ increases, the demand for eggs decreases.

Explanation:

Inferior goods is the type of good which demand does not increase even though the initial buyer experience an increase in purchasing power.

The reason for this is because that consumer choose to<u> purchase another product that he/she couldn't afford</u> before having an increase in income.

This 'other' product tend to be more expensive and higher in quality compared to the previous one. This is why the word 'inferior' is attached to the previous product.

From the example above, the reason why the demand for the eggs does not increase is most likely happen because the consumer choose to purchase higher quality of food. (such as a more expensive meat)

6 0
3 years ago
Read 2 more answers
When an organization has employees of different backgrounds and skill sets, it has greater and will be better than monocultural
creativ13 [48]

N.B: I don't understand your question fully and neither can i find the complete question anywhere on the internet so im going to answer this sentence and hope it helps you.

Answer:

True

Explanation:

When a company has employees from different backgrounds and with different skills set, it helps the company come up with a lot of innovations that cuts across different cultures, thereby expanding their own range of services and/or goods. Also it helps in problem solving as each employee can come to the table with various ways of solving a problem.

This situation can be called diversity of thoughts.

Cheers.

7 0
3 years ago
A numerical measure of your creditworthiness is your credit ___.
nydimaria [60]
The answer is C. Score
6 0
3 years ago
A manager wants to determine the number of containers to use for incoming parts for a kanban system to be installed next month.
Shalnov [3]

Answer:

y

Explanation:

7 0
3 years ago
Henri earned a salary of $50,000 in 2001 and $70,000 in 2006. The consumer price index was 177 in 2001 and 265.5 in 2006. Henri'
gladu [14]

Answer:

Henri's 2006 salary in 2001 dollars =$46,666.66

Explanation:

A rise in the price index implies inflation

Inflation is the increase in the general price level. Inflation erodes the value of money.  

This price index is the weighted average price of a basket of goods and services consumed by a typical consumer. It is used to measure the rate of inflation.  

So we can determine the salary in the base year value  as follows:  

2006 Salary in the base year terms=

CPI base year/CPI in the current year × salary in the current year

CPI base year- 177, CPI in the current yea- 256.5,

Salary in the current year - 70,000

Henri 2006 Salary in 2001 Dollar

=177/265.5 ×70,000/265.5 = 46,666.66

Henri's 2006 salary in 2001 dollars =$46,666.66

8 0
3 years ago
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