The three factors used to determine a company’s credit rating are its current ratio, its debt-to-equity ratio, and its interest coverage ratio.
<u>Explanation:</u>
- A credit rating comes in the list of the company’s annual performance targets. It helps to decide the company’s current year progress.
- A company’s debt-to-equity ratio is used to know the debt of a company as compared to the total equity. If this ratio is high, the company is taking on much debt.
- The current ratio marks a way to compute the liquidity of the company. It shows how well a firm is placed to meet the short term obligations. Broadly, a 2-1 ratio is considered a good ratio.
- The interest coverage ratio tells how well the company may pay its future loan payments. If the ratio is higher than 3-to-1, it suggests that the company is in a good position to make future payments.
Answer:
the amount of interest that is collected is $503.75
Explanation:
The computation of the amount of interest that is collected is shown below:
= Cash loan × number of days ÷ total number of days × rate of interest
= $31,000 × 90 days ÷ 360 days × 6.5%
= $503.75
Hence, the amount of interest that is collected is $503.75
This is the answer but the same is not provided in the given options
We simply applied the above formula so that the correct value could come
And, the same is to be considered
Answer:
$80541.
Explanation:
Please find the detailed answer as follows:
The Present value is the present value of a future amount of money or stream of cash flows of a specified rate of return
. Please refer to the present value formula .
Present Value = 20000/ (1+.10) ^1 + 30000/ (1+.10) ^2 + 50000/ (1+.10) ^3 = $80540.95 or $80541 .Therefore the correct answer is $80540.95 or $80541.
Answer: Noting down of ideas
Explanation: Cedric could note down the ideas and points he remembers on the back of his test booklet. He should first read the question and make short notes of every point he remembers regarding that question.
This strategy will help Cedric to answer the questions while doing the final writing in answer sheet. By doing this he can also improve his speed with accuracy while answering.
