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Mars2501 [29]
3 years ago
11

If one firm has a higher total debt to total capital ratio than another, we can be certain that the firm with the higher total d

ebt to total capital ratio will have the lower TIE ratio, as that ratio depends entirely on the amount of debt a firm uses.True / False.
Business
1 answer:
vodomira [7]3 years ago
8 0

Answer:

True

Explanation:

Total debt to total capital ratio, also known as D/C ratio is a ratio that measures a company's capital structure, financial solvency, and degree of leverage, at a particular point in time.

While the Times Interest Earned (TIE) is a ratio which measures the ability of an organization to pay its debt obligations.

So A company with high debt-to-capital ratios, compared to a general or industry average, may show weak financial strength and hence would have a lower ability to pay its debt obligations one which the TIE ratio measures.

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When a competitive market is in​ equilibrium, what is the economically efficient level of​ output? A. any output level where mar
Anestetic [448]

Answer:

The correct answer is C. the output level where marginal cost is equal to marginal benefit .

Explanation:

Competitive equilibrium Traditional concept of economic equilibrium used for the analysis of  goods markets with flexible prices and many agents, which usually serve as a benchmark for efficiency in economic analysis. Crucially, it depends on the assumption of a context in which each agent makes decisions about such a small amount compared to the total amount traded in the market that their individual transactions have no influence on prices.

It consists of a price system and an allocation of the production and consumption of the economy among the various agents, such that, given the prices, each agent maximizing its objective function (benefits, preferences) subject to restrictions (technological, of resources) plans to trade its share in the proposed allocation, at prices that make all exchanges compatible with each other by balancing the markets, that is, matching the aggregate supply with the demand  aggregate of each of the goods and services traded.

6 0
3 years ago
Suppose your firm receives a million order on the last day of the year. You fill the order with million worth of inventory. The
s344n2d4d5 [400]

Answer:

a. Revenues - These will increase by $5 million to represent the entire value of the order.

b. Earnings. - Increase by $3 million

Earnings in this case are revenue less the cost of inventory which will be;

= 5 - 2

= $3 million

c. Receivables - Increase by $4 million

The customer paid $1 million upfront which means that they still owe $4 million out of the $5 million. This will go to the receivables account to show that the customer owes the business.

5 0
3 years ago
Assume that a consumer has a given budget or income of $12 and that she can buy only two goods, apples or bananas. The price of
Natasha_Volkova [10]

Answer:

8

Explanation:

The maximum amount she can spend is $12. If she buys 4 apples, it would cost her : 4 x $1.50 = $6. She would have $12 - $6 = $6 to spend on bananas.

If the price of bananas are $0.75, she can buy a total of $6 / $0.75 = 8 bananas

I hope my answer helps you

3 0
3 years ago
Mulally's use of "the way forward," which involved closing and modernizing plants, implementing data
murzikaleks [220]

The actions of Mulally in doing the above can be said to be part of his <u>Strategy </u>for <u>Ford</u>.

<h3>Actions by John Mulally.</h3>
  • Were done to turn Ford Motors around so that it would be successful again.
  • Involved closing down plants and increasing labor productivity.

John Mulally was the CEO of Ford Motors and when he took over, Ford needed a turnaround in their fortunes. He engineered a series of changes to ensure that Ford would be competitive again.

In conclusion, this was his strategy.

Find out more on labor productivity at brainly.com/question/6430277.

4 0
2 years ago
What is the current yield on a zero coupon bond with a remaining life of 4 years, a yield to maturity of 10.8%, and a par value
Tanya [424]

Answer:

$663.5

Explanation:

given that

number of years remaining = 4 years

yield to maturity ratio = 10.8% = 1.108

Par value = $1000

Current yield takes a look at the current price of a bond, instead of looking at it from a face value. That being said, it can be calculated mathematically as

Current yield = 1000 / 1.108^4

Current yield = 1000 / 1.507

Current yield = $663.5

Therefore, the current yield from the question we are given, is found to be $663.5.

I hope that helps

8 0
3 years ago
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