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Marina86 [1]
3 years ago
6

In the following information, what is the times interest earned ratio?

Business
1 answer:
Ilya [14]3 years ago
7 0

Answer:

TIE = 150,000 / 5,000 = 30

Explanation:

Times Interest Earned (TIE) = Earnings Before Interest and Tax (EBIT) / Interest Expense

TIE ratio shows the ability of a company to meet its interest payments on its debt (solvency), expressed in times.  

In this case 3.33% of the operating profits goes towards servicing the debt or the operating income are 30 times the annual interest expense.

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By the fourth quarter of 2015, U.S. households had accumulated $12.5 trillion in housing equity, which represents about 14 perce
Sloan [31]

Answer:

correct option is d. two-thirds

Explanation:

given data

accumulated =  $12.5 trillion

net worth = 14 percent

solution

here as per  statistical data of 4th quarter in year 2015,

that required holding is two third of having home.

and Accumulated equity indicate the demand for housing in the country

so here 1 - \frac{2}{3} =  \frac{1}{3} rd left out

it is assumed that they should get home at the beginning of 2015 (in the 1st quarter)

so correct option is  d. two-thirds

7 0
3 years ago
Justine has just started a company that makes notebooks and other stationery items out of recycled materials. She has decided to
Zigmanuir [339]

Answer:

10% is a high-profit margin

Explanation:

Since Justine is just starting her new business this might actually be a bad idea because 10% is a high-profit margin. In new business, you need to start off with very small profit margins in order to attract customers with low prices and grow a loyal customer base. Once the business begins to grow and sales start kicking up then you may begin increasing your profit margins.

4 0
3 years ago
Turnbull Corporation is constructing an office building that it will use in its business. Construction of the building started i
Scorpion4ik [409]

Answer: $12000

Explanation:

The amount of interest should Turnbull include in the cost of the building from the current period will be calculated as the outstanding debt multiplied by the interest rate. This will be:

= $200,000 × 6%

= $200,000 × 6/100

= $200,000 × 0.06

= $12,000

Therefore, the correct option is C.

5 0
3 years ago
A monopolist that practices perfect price discrimination a. creates no deadweight loss. b. charges one group of buyers a higher
adoni [48]

Answer:

A monopolist that practices perfect price discrimination

  • a. creates no deadweight loss.

Explanation:

Theoretically, if a monopolist is able to practice perfect price discrimination:

  1. marginal revenue curve = demand curve
  2. consumer surplus = 0
  3. every customer pays the highest amount that they are willing to pay
  4. production level = perfectly competitive level of output

4 0
3 years ago
Omega Inc. expects its net income to be $525,000 this year. The firm's dividend payout ratio is 60 percent. The firm is financed
REY [17]

Answer: $700,000

Explanation: Retained earnings is the amount of earnings left with the company after paying for dividends of common stockholders.

Retained earnings break even can be computed as follows :-

Break\:even=\frac{retained\:earnings}{equity\:ratio}

where,

retained earnings = net income (1- payout ratio)

                              = $525,000 (1 - 60%)

                              =  $210,000

therefore,

Break\:even=\frac{210,000}{0.3}

=$700,000

3 0
3 years ago
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