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SCORPION-xisa [38]
3 years ago
9

g Which of the following are the three factors used to determine a company's credit rating? Its current ratio, its debt-to-equit

y ratio, and its interest coverage ratio The percentage of net profit used to make payments on the company's total debt outstanding in the prior year, the company's inventory turnover ratio, and the amount of cash the company keeps in its retained earnings account A company's current ratio, how much it has in accounts receivable, and how many times it has cut its dividend in the past three years Whether the company's prior-year current assets are big enough to cover its upcoming-year interest payments, the company's operating profit margin, and whether the company's total debt exceed its total shareholders' equity Its debt-to-equity ratio, its interest payments, and its debt-to-assets ratio
Business
1 answer:
NISA [10]3 years ago
8 0

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.   

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The one-year forward rate of the British pound is quoted at $1.60, and the spot rate of the British pound is quoted at $1.63. Is
mihalych1998 [28]

Answer:

discount; 1.8%

Explanation:

Calculation for the forward rate using this formula

forward rate=(F/S) - 1

Let plug in the formula

forward rate= ($1.60/$1.63) - 1

forward rate= -1.8 percent.

Therefore The forward DISCOUNT is 1.8 percent.

7 0
3 years ago
"An individual is unique and does not speak for or represent anything other than themselves." This statement is an argument agai
aivan3 [116]
I think it’s c , i might be wrong tho lol
3 0
3 years ago
The Card Shoppe needs to maintain 18 percent of its sales in net working capital. Currently, the store is considering a four-yea
mylen [45]

Answer:

$56,520

Explanation:

As per given data

Year     Sales          Working Capital 18%

   0      $279,000   ($50,220)

   1       $308,000   ($5,220)

   2      $314,000    ($1,080)

   3      $314,000    $0

   4      $314,000   $56,520

As the sales value of year 2, 3 and 4 are same, as capital is adjusted in year 2 and company has equal working capital required in year 3, years 4 is the last year of the project so, working capital will be recovered from the project

Net Working capital will be reimbursed at the end of the project. The accumulated value of investment in working capital will be recorded as cash inflow in the analysis.

0 0
3 years ago
T. Dole invests cash and land into an existing partnership. The cash invested is $30,000 and the land has a fair market value of
bekas [8.4K]

The journal entry to reflect this transaction would include a credit to T. Dole, Capital in the amount of $90,000.

<h3>What journal entries?</h3>
  • A journal entry is an act of keeping or producing records of any economic or non-economic transaction.
  • An accounting journal, which shows a company's debit and credit balances, records transactions.
  • The journal entry can be made up of multiple records, each of which is either a debit or a credit.
  • Otherwise, the journal entry is termed unbalanced if the sum of the debits does not equal the total of the credits.

So, the journal entry to reflect this transaction would include a credit to T. Dole, Capital in the amount of cash invested, and the fair market value.

30,000 + 60,000 = $90,000

Therefore, the journal entry to reflect this transaction would include a credit to T. Dole, Capital in the amount of $90,000.

Know more about journal entries here:

brainly.com/question/14279491

#SPJ4

The complete question:

T. Dole invests cash and land into an existing partnership. The cash invested is $30,000 and the land has a fair market value of $60,000. The journal entry to reflect this transaction would include a credit to T. Dole, Capital in the amount of $ ______.

7 0
1 year ago
To find out more about the pros and cons of a product, it is often a good idea to study the behavior of the individuals or group
Natalija [7]

Answer:

Copy Testing

Explanation:

Copy testing is a market research analysis method that utilizes the consumers' responses , behavior and feedback to determine the effectiveness and relevance  of an advertisement.

This method reveals a great deal of information about the pros and cons of a particular product through the analysis and study of individuals or group of users.

It addresses media channels like the internet and social media ,  television radios and others.

5 0
3 years ago
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