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3 years ago

The process of determining the probability that potential customers will not pay is called:

1 answer:

5 0

The process of determining the probability that potential customers will not pay is called <u>"credit analysis".</u>

Credit analysis is a sort of analysis an investor or bond portfolio chief performs on organizations or other obligation issuing substances to gauge the element's capacity to meet its obligation commitments. The credit investigation looks to recognize the suitable dimension of default chance related with putting resources into that specific substance.

The result of the credit analysis will figure out what hazard rating to appoint the obligation guarantor or borrower. The hazard rating, thus, decides if to stretch out credit or advance cash to the obtaining substance and provided that this is true, the sum to loan.

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Pacific Packaging's ROE last year was only 6%; but its management has developed a new operating plan that calls for a debt-to-ca

Gre4nikov [31]

Answer:

0.11%

Explanation:

Given that

Earning before interest and tax = $560,000

Interest = $336,000

The computation of company's return on equity is shown below:-

So, the Earning before tax

= $560,000 - $336,000

= $224,000

Tax = $224,000 × 30%

= $67,200

Earnings after interest and taxes = Earning before tax - Tax

= $224,000 - $67,200

= $156,800

Asset turnover ratio = total revenue ÷ total assets

3.4 = $8,000,000 ÷ total assets

Total assets = 2,352,941.18

Equity ratio = 1 - debt ratio

= 1 - 0.40

= 0.60

Total Equity = equity ratio × total assets

= 0.60 × 2,352,941.18

= 1,411,764.71

Return on Equity = Net income ÷ Equity

= $156,800 ÷ 1,411,764.71

= 0.11%

6 0

3 years ago

Effective corporate governance is essential in large corporations because corporate ownership (by shareholders) is separated fro

nalin [4]

Answer:

False

Explanation:

Outside directors are members of the board of directors that are not employees of the corporation. While an inside director is a member of the board that is also employed by the corporation, e.g. CEO.

Corporations are separate entities form their stockholders, that is why limited liability applies to them. The board of directors doesn't have to include stockholders or employees, they usually do, but it is not required by law. Outside directors should very experienced and capable individuals that possess certain expertise that can help the corporation. Also, the board should control and supervise upper management, but if only inside directors were admitted into it, then who would control them?

7 0

3 years ago

Read 2 more answers

Thailand wants to increase its trade and economic integration with Cambodia. Which trading alliance will be the most useful in a

Zigmanuir [339]

ASEAN is the trading alliance that will be the most useful in achieving this goal.

<h3>What is ASEAN ?</h3>

The Association of Southeast Asian Nations (ASEAN) is an international organization whose primary goal is to promote economic growth and regional stability among its members.

Indonesia, Malaysia, the Philippines, Singapore, Thailand, Brunei, Laos, Myanmar, Cambodia, and Vietnam are the current members.

<h3>What is ASEAN doing right now?</h3>

ASEAN's mission is to foster collaboration and cooperation among member countries while also advancing the region's overall interests, including economic and trade growth. It has negotiated a free trade deal among member nations as well as with other countries like China, and it has made it easier for residents of member countries to travel around the area.

It formed the ASEAN Economic Community (AEC) in 2015, marking a significant step forward in the organization's regional economic unification objective. The AEC sees the area as a single market with a free flow of commodities, services, investments, and skilled labor, as well as an independent movement of money.

Therefore, ASEAN is the trading alliance that will be able to help in achieving Thailand this goal.

For more information on ASEAN, refer to the given link:

brainly.com/question/25170760

#SPJ4

8 0

2 years ago

What is the bottom-line message about the use of heroic measures in hospital care?

nlexa [21]

<span>To hospital staff, the answer to the question about "heroic measures" tells them what the patient and/or the next of kin will accept as 'standard of care' in the treatment of that patient in the event of a life-threatening state. Most facilities will break it down further to 1. no heroic measures to be taken at all,, 2 hydration and pain relief only, 3 hydration, feeding, and pain relief. and 4. all possible measures taken. In the parlance of today's world, this document may be called an End of Life Directive, Living Will, Do Not Resusitate Order, or Medical Power of Attorney. It all boils down to this-how much effort will be required from the facility by the patient or family to avoid liability for the death of the patient?</span>

5 0

3 years ago

Sally is looking to invest in Agricon Products when its P/E ratio is lower than 15. Each share is currently projected to earn $1

snow_lady [41]

Answer:

Explanation:

P/E ratio is a method of valuing a company. It is derived by dividing price of the stock by earnings

1. $18/1.3 = 13.8

2. 19/1.3 = 14.6

3. 20 / 1.3 = 15.4

The first and second stock have a P/E ratio is lower than 15.

4 0

3 years ago