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3 years ago

Allen, inc., has a total debt ratio of .34. what is its debt-equity ratio

1 answer:

6 0

Total debt ratio is the ratio of total debt to total assets
i.e
Total debt ratio = Total debt / Total assets
But Total assets is nothing but total equity plus total debt
Now let us consider,
TD = Total debt
TE = Total equity
TA= Total assets
Therefore,
Total debt ratio = TD/TA
But as mentioned above
TA = TD + TE
total debt ratio = Total debt/(total debt+total equity)
total debt ratio = .34(given)
.34 = TD / (TD + TE)
Solving this equation yields:
0.34 = 1/(1+ TE/TD)
0.34(1+TE/TD) = 1
0.34 + 0.34TE/TD =1
.34(TE/TD) = 1 - 0.34
0.34 (TE/TD) = 0.66
0.34TE = 0.66TD
Now, Debt equity ratio is the ratio of Total debt to total equity
Debt-equity ratio = TD / TE
Debt-equity ratio = 0.34 / 0.66
Debt-equity ratio = 0.51515152

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This is commonly known and includes factors, forces, outcomes, situations, and events outside an organization that influences or affect its performance.

The components of external environment includes: economic, demographic, technological, sociocultural, political/legal, global etc.

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This environment is said to be very stable and also predictable. The Few components are sort of similar and remain the same. And it requires little need for sophisticated knowledge of components.

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pippi, the manager of quik mart, deposits the store's receipts in its account at regional bank. as to the receipts, the relation

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As to the receipts, the relationship between Quik mart and the bank is Creditor and Debtor.

<h3>Who is a Creditor and Debtor?</h3>

Any individual or organization that owes money to another is said to be a debtor . The debtor often has to pay both the principle and interest on the loan.

Creditors are people or organizations that lent money to another firm and are now owed money. An organization or individual that loans money or offers credit to some other party is known as a creditor.

Debtors are individuals or businesses who owe you money. They are also referred to as "accounts receivable" by you.

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1 year ago

The function that serves as an intermediary between an organization shipping a product and the actual carrier is.

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The function that serves as an intermediary between an organization shipping a product and the actual carrier is Customer Broker.

<h3>What is Custom brokers?</h3>

Custom brokers , also known as customs house brokers, are roles that may be held by or linked to customs brokerage firms, independent companies, shipping lines, importers, exporters, independent businesses, and freight forwarders.
Those who hold a license as a customs broker are not considered to be "customs officials" by the government (in other countries the two terms may be interchangeable). The tariff schedule, a list of duty rates for imported goods, CATAIR, the legal and administrative requirements controlling importations, and other trade-related issues must all be known to customs brokers.
For instance, a customs broker can be required to inform an importer of the country-specific marking requirements or complete the paperwork for a consignment of clothes that is subject to quotas and visa restrictions.
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1 year ago

Staci invested $900 three (3) years ago. Her investment paid 10.8 percent interest compounded monthly. Staci's twin sister Shell

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Staci's investment is worth today <u>$1,242.58</u>.

Shelli's investment is worth today <u>$1,107.83</u>.

<h3>What is the future value of an investment?</h3>

The future value of an investment is the present value compounded periodically at an interest rate.

The future value can be determined using an online finance calculator as below.

<h3>Data and Calculations:</h3>

Staci's investment = $900

Investment period = 3 years

Interest rate = 10.8% compounded monthly

Stack's twin investment = $800

Investment period = 3 years

Interest rate = 11% compounded quarterly

<h3>Staci's investment:</h3>

N (# of periods) = 36 months (3 x 12)

I/Y (Interest per year) = 10.8%

PV (Present Value) = $900

PMT (Periodic Payment) = $0

<u>Results</u>:

FV = $1,242.58

Total Interest = $342.58

<h3>Shelli's investment:</h3>

N (# of periods) = 12 quarters (3 x 4)

I/Y (Interest per year) = 11%

PV (Present Value) = $800

PMT (Periodic Payment) = $0

<u>Results</u>:

FV = $1,107.83

Total Interest $307.83

Thus, the worth of Staci's investment today is <u>$1,242.58</u>, while Shell's is <u>$1,107.83</u>.

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