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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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Market penetration

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What are the greatest challenges Apple is facing? Detail them by internal weaknesses and external threats. How can Apple transfo
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Explanation:

The biggest challenges facing Apple today may lie in its biggest marketing construction: its brand.

The Iphone has become a world reference in cell phones with advanced technology and differentiated features. The success of the Apple operating system, the IOS and the latest generation device configured an expressive recipe that configured the company in the world ranking of technological companies in the world.

However, despite being a favorable condition for organizational success, the brand operates with a programmed obsolescence system for its iphones to launch new versions with minor changes for users, such as adding a camera or changes to the design of the device, what constitutes an internal weakness of the company.

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For Apple to be able to transform weaknesses into strengths and threats into opportunities, it is necessary for the company to use all the added value of its consolidated brand to rethink marketing strategies and offer exclusive advantages to encourage consumers to change their devices newer versions that offer greater differentials and benefits.

3 0
3 years ago
Rachel borrows money from her bank to buy a car. What type of bank service
Naya [18.7K]

Answer:

D

Explanation:

A loan refers to money borrowed by people or organisations from the bank

8 0
2 years ago
1. Suppose you borrow money at a nominal interest rate of 14%. At the time you borrow the money, you expect inflation to be 8%.
tino4ka555 [31]

Answer:

1) 6% , 2) 5% , 3) As inflation rate ise higher than expected inflation rate, real interest rate would be lower than expected real interest rate

Explanation:

Real Interest Rate is the interest rate, which accounts for the impact of inflation.

Real Interest Rate = Nominal Interest Rate - Inflation

1) 14% - 8% = 6%

2) 14% - 9% = 5%

3) In case of variation in expected & actual inflation rate

1 + nominal interest rate = (1 + real interest rate) (1 + expected inflation rate)

1 + 14% = (1 + r) (1 + 3%)

1.14 = (1 + r) (1.03)

1.14 = 1.03 + 1.03r

0.11 = 1.03r

r = 8.82  {If inflation is higher at 9%}

If inflation could have been at expected 3%, real interest rate could have been 14% - 3% = 11%.

So : As inflation rate turned out to be higher than expected inflation rate, real interest rate turned out to be lower than expected real interest rate

7 0
3 years ago
Uan zhang bought a 10-year bond that pays 8.25 percent semiannually for $911.10. what is the yield to maturity on this bond?
IceJOKER [234]

Using the trial-and-error method, this bond's yield to maturity is 9.66 percent.

<h3></h3><h3>What do bonds do?</h3>

An IOU-like debt security called a bond. Bonds are issued by borrowers to attract capital from investors ready to extend a loan to them for a specific period of time. When you purchase a bond, you are making a loan to the issuer, which could be a corporate, government, or municipality. Bonds are fixed-income securities that reflect loans from investors to borrowers (typically corporate or governmental).

As stated in the assertion

We have stated that Uan zhang purchased a 10-year bond with a 6.5% interest rate.

We also need to determine this bond's yield to maturity.

In order to achieve this,

There is a donation of $911 10.

n = 10 years until maturity

Rate of interest = C = 8.25%

Semi-annual coupon: $1,000 divided by 0.0825/two equals $41.25.

I = yield to maturity

Bond present value = PB = $911.10

To find YTM, use the trial-and-error method. We can infer that the yield to maturity is greater than the coupon rate because the bond is being sold at a discount.

YTM = 9.4%

= $522.90 + 391.54 ≅ $914.43

About 9.66 percent of the YTM is present.

  • Calculating the exact YTM using a financial calculator yielded a result of 9.656 percent (2 4.828%).
  • So, using the trial-and-error method, this bond's yield to maturity is 9.66 percent.

To learn more about the sum, refer to:

brainly.com/question/17695139

#SPJ4

6 0
1 year ago
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