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jolli1 [7]
3 years ago
14

Companies HD and LD have the same total assets, sales, operating costs, and tax rates, and they pay the same interest rate on th

eir debt. Both firms finance using only debt and common equity, and total assets equal total invested capital. However, company HD has a higher total debt to total capital ratio. Which of the following statements is CORRECT?
a. Company HD has a lower equity multiplier.
b. Company HD has more net income.
c. Company HD pays more in taxes.
d. Company HD has a lower ROE.
e. Company HD has a lower times-interest-earned (TIE) ratio
Business
1 answer:
aliina [53]3 years ago
7 0

Answer:

B) Company HD has more net income.

Explanation:

The total debt to capital ratio is calculated by dividing total liabilities by the sum of total shareholders' equity + total debt:

  • debt to capital ratio = total debt / (total debt + total equity)

Since company HD uses more debt to finance its operations, its net income will be lower since it has to pay more interests, but its ROE will be higher since equity is much lower also. Companies that use a lot of financial leverage are more risky but at the same time can generate higher returns to their owners.

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Burns Medicine Shop developed a website where customers could ask the pharmacists questions and could refill prescriptions onlin
daser333 [38]

Answer:

Option d: No statutes presently require websites to have or disclose a privacy policy.

Explanation:

A Privacy Policy

This is simply defined a legal document written statement that gives a clear description of how a company or website takes, analyse, handles and processes data of its customers mostly and a visitors. It gives or describes if the information is hidden.

Privacy laws in the world simply collect personal information from the website visitors, it is usually available with your mobile app. There has been no power put in place or statutes that require websites to have or disclose a privacy policy.

3 0
3 years ago
You want to go to Europe 5 years from now, and you can save $7,300 per year, beginning one year from today. You plan to deposit
tino4ka555 [31]

Answer:

$36,602.5

Explanation:

Your profit each year of saving $7,300 at 8.5% return each year is $620.5

In that case you earn $7,920.5 each. Multiply by 5 years which is the fifth year you made the last deposit, and you will arrive at $36,602.5

6 0
3 years ago
Read 2 more answers
An accountant increases the price he charges for his services by 2 percent. In​ response, the demand for his services decreases
Rashid [163]

Answer:

Decrease

Explanation:

The reason is that the price and demand are inversely proportional so if the price has been increased then the demand of the product will be decreased. Take the example of Bugatti Chiron, the price of the car is $19 million and total number of people that own is in tens this is because the buyers are less in quantity due to higher prices of the product. Same is the case here, if the accountant is going to charge high then his revenue will drop due to lower people are willing to buy its services.

4 0
3 years ago
Cash outflows for McKinney Publishing in 2020 included:________. $347,000 in salaries to authors. $180,000 in fees to contracted
Marat540 [252]

Answer: $527,000

Explanation:

Salaries to authors = $347,000

Fees to contracted editors = $180,000

Copyrights obtained = $83,000

Purchase of a new printing warehouse = 1.3 million

Upgrade of current printing equipment = $560,000

McKinney Enterprises expense will be:

= Salaries to authors + Fees to contracted editors

= $347,000 + $180,000

= $527,000

4 0
3 years ago
The residuals are observations of the error variable . Consequently, the minimized sum of squared deviations is called the sum o
kenny6666 [7]

The statement in the question is True.

<u>Explanation:</u>

In statistics, the residual sum of squares (RSS), otherwise called the sum of squared residuals (SSR) or the total of squared estimate of errors (SSE), is the aggregate of the squares of residuals (deviations anticipated from real observational estimations of information). It is a proportion of the error between the information and an estimation model.

A little RSS demonstrates a tight attack of the model to the information. It is utilized as an optimality standard in parameter determination and model choice.

6 0
3 years ago
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