Answer:
b. issuing new equity
Explanation:
debt to equity ratio = Total debt/ Total equity x 100
and
interest earned ratio = Operating Income ÷ Interest charge
<u>Ways to decrease debt to equity ratio :</u>
1. Increase equity (no effect on interest earned ratio)
2. Decrease debt (increases interest earned ratio)
thus,
issuing new equity have no immediate effect on the times interest earned ratio but will cause debt to equity ratio to decrease.
Answer:
Option C) Decrease in Total Assets , and No Effect on Equity
Explanation:
Telephone bill it's a Current Liability , if you decide to pay it as soon as you receive it you have to use Cash which is part of your Current Asset, so the impact it's a decreased in your Current Assets through the Cash component.
This movement has no impact in the Sotckholder Equity.
Answer: The equilibrium price is most likely to "DECREASE BY $1". Option c is the most correct option.
Explanation: A unit tax of $1 is the tax on the sales of the unit. In a supply demand curve, an increase in the sales tax will cause the curve to shift inwardly, thereby showing a decrease in the equilibrium price of the curve.
Equilibrium price is the point where the amount suppllied is equal to the consumers demand at a stable price.
For $1 unit tax to be levied on the goods, it will increase the price of the goods by $1, which will reduce supply by $1, therefore the equilibrium price will decrease by $1 to adjust itself on the new changes.
It is TRUE. Marginal cost is the amount added when there is
an additional unit of product or service produced. Meanwhile, the total cost,
as defined in accounting, is composed of the total fixed costs and its total
variable costs. Fixed cost is not affected by the number of output a company
produced. Thus it won’t affect the marginal cost.
I think the correct answer is : Tenancy for years
