The debt-to-asset ratio is classified under Financial Leverage Ratios. Financial leverage ratios indicate the firm's solvency if it is long-term or not. Debt-to-asset ratio provides the percentage of the total assets financed by liabilities, creditors, and debt. It is calculated by dividing the total liabilities by the total assets.
Bare with me here. I may be wrong but I hinkle it's true
Answer: OPTION C
Explanation The answer to this question is cash payback and average rate of return method.
Capital rationing is the method used by companies to effectively allocate the limited funds a company has on alternative funds.
Under payback period method the company evaluates how much time will it take a project to recover its initial cost and as per average rate of return method the company evaluates the return generated from the net income, it does not take into consideration the time value of money.
Answer:
The correct answer is letter "C": probably reasonable and enforceable.
Explanation:
In Law, covenants are agreements between two parties that push one of them to refrain from doing certain activities. There are two types of the covenant: covenants running with the land and covenants for title. In Carl's case, <em>it is possible that the covenant provisioned at the moment of selling Gringo's Restaurant to Wilma is reasonable to promote fair competition within a determined area. Therefore, Carl is not allowed to open another restaurant similar to the one he is selling otherwise the covenant in Wilma's contract could be enforced.</em>
Answer:
12%
Explanation:
Given that,
Potential real GDP = $200 billion
Natural rate of unemployment = 6 percent
Actual rate of unemployment = 12 percent
Okun's law refers to the law which states the relationship between the losses in the production of a particular nation and the unemployment.
It also indicates that for every 1 percent, the actual rate of unemployment exceeds the natural rate of unemployment, then as a result there is a GDP gap of 2% is generated.
Cyclical unemployment:
= Actual rate of unemployment - Natural rate of unemployment
= 12% - 6%
= 6%
Negative GDP gap:
= 6% × 2
= 12%
Therefore, the of the negative GDP gap as a percentage of potential GDP for the economy is 12%.
