Answer:
$5,000
Explanation:
Based on the information given we were told that had a total basis in her 500 shares of stock of the amount of $5,000 which means that The total basis of Melissa's 1,000 shares of stock after the dividend is $5,000 which is her total basis in her 500 shares of stock.
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They would receive a 2 point moving violation.
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Answer:
Debt ratio = 56%
Times Interest earned = 5 times
Explanation:
<em>The debt ratio is the proportion of the total assets amount that is financed by debt . It is a measure of financial risk. A company with a high debt ratio (in excess of 50%) is considered financially risky. That is may not be able to meet its short term financial obligations</em>
Debt ratio = Debt/Total assets × 100
= (140,000/250,000)× 100
= 56%
Times interest earned is the number of times the earning before interest and taxes (EBIT) can pay the interest obligation. It is a measure of financial risk. For example, a company with a ratio of less than 3 times might be considered as potentially unable to meets its loan obligation
Times interest earned = Earnings before interest and tax (EBIT)/Interest expense
= 75,000/15,000
= 5 times.