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lozanna [386]
3 years ago
6

​Frank's Boat​ Shop, Inc. reports operating income of​ $80,000 and interest expense of ​ $15,000. The average number of shares o

f common stock outstanding during the year was​ 30,000 shares. What is the times-interest-earned ratio?a. 3.5b. 6.0c. 8.9d. 5.0
Business
1 answer:
liraira [26]3 years ago
8 0

Answer: Option (d) is correct.

Explanation:

Given that,

Operating income =​ $80,000

Interest expense = $15,000

Average number of shares of outstanding stock during the year = 30,000 shares

Times interest earned ratio = \frac{Net\ Income\ before\ tax}{Interest\ Expense}

=\frac{80000}{15000}

= 5.33

So, the nearest value in the options is 5.0.

Therefore, option (d) is correct.

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What’s the term for a condition that must be met before closing? Contingency Exclusion Line item Option
Rashid [163]

Answer:

Contingency

Explanation:

A contingency clause is a condition stipulated in a purchase agreement that must be met before the closing date. Contingencies are normally included in the purchase of properties such as homes and land.  A contingency or condition usually relates to issues to do with financing, insurance, appraisal, or financing.  A contingency becomes part of the sales contract should the buyer, and the seller agree on the other terms.

6 0
3 years ago
Consider the market for tablet (like iPads and Android tablets). Suppose the average price of an iPad goes up by $20 when a majo
NikAS [45]

Answer:

The price of Android tablets will increase.

The demand for Android tablets will increase.

Explanation:

iPads and android Tablets are direct competition for one another.

So, when the average prices of an ipad goes up ,  some percentage of the <u><em>consumers will seek alternatives for similar product.</em></u> This is why the demand for android tablets will increase.

But, there is one more point to consider.

Online retailer tend to sell different brands of a similar product to its consumers.  It is very likely that big retailers will sell both apple and andorid products in their store.

<u><em>if the price of Ipad goes up because of the change in the retailer's sale policies, that change will definitely affect the price of the android as well</em></u>

Because of this, The price of Android tablets will also increase.  Even though the increase may not be as high as Ipad since they have lower baseline price/

5 0
3 years ago
A stock has an average expected return of 9.7 percent for the next year. The beta of the stock is 1.34. The T-Bill rate is 5.2%
givi [52]

Answer:

3.4%

Explanation:

According to the capital asset price model: Expected rate of return = risk free + beta x (market rate of return - risk free rate of return)

9.7 = 5.2 + 1.34(x - 5.2)

9.7 - 5.2 =  1.34(x - 5.2)

3.35 = x - 5.2

4 0
3 years ago
John wants to have a big house, a fancy sports car, and enough money to go out and have fun every weekend with his friends. John
nekit [7.7K]
The answer would be D
4 0
3 years ago
hich of the following is NOT one of the six questions that comprise the task of evaluating a company's resources and competitive
Vadim26 [7]

Answer:

The correct answer is "What are the company's most profitable geographic market segments?"

Explanation:

In order to research on the companys' resource and competitive position, a researcher does not need to ask questions related to the geographic market segments.

Geographic market segments refer to the geographical spread of the market of a company.

I hope the answer is helpful.

Thanks for asking.

4 0
3 years ago
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