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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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In the fictional country of Dirian the economics statistics department has been busy calculating the price index for a basket of

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Answer:

Inflation refers to the general rise in price levels of goods and services in an economy.

$Inflation = \frac{CPI in current year - CPI in previous year}{CPI in current year} *100$

2014 Inflation;

$Inflation = \frac{104.7 - 100}{100} *100\\= 0.047$

= 4.7%

2015

$Inflation = \frac{109.3 - 104.7}{104.7} *100\\\\= 0.0439$

= 4.39%

2016

$Inflation = \frac{113.1 - 109.3}{109.3} *100\\\\= 0.0348$

= 3.48%

2017

$Inflation = \frac{119.2 - 113.1}{113.1} *100\\\\= 0.0539$

= 5.39%

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3 years ago

Bill Dukes has $100,000 invested in a 2-stock portfolio. $32,500 is invested in Stock X and the remainder is invested in Stock Y

pshichka [43]

Answer:

0.98

Explanation:

Computation for Bill Duke portfolio's beta

First step is to find the Investment in Y which is:

Investment in Y=100,000-35,000

=$65,000

Second step is to calculate for the Portfolio beta using this formula

Portfolio beta=Respective beta*Respective Investment weight

Portfolio beta =(35,000/100,000*1.5)+(65,000/100,000*0.7)

Portfolio beta=(0.35*1.5) +(0.65*0.7)

Portfolio beta =0.525 +0.455

Portfolio beta=0.98

Therefore the Portfolio Beta will be 0.98

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3 years ago

If eHermes' supplier of self-driving vehicle chassis is able to reduce costs by having better data on both finished goods inve

Allushta [10]

Answer:

Linkages

Explanation:

Running a business is a difficult and competitive job to do and it requires tremendous internal and external effort to make it successful. Using linkages across the various processes of business helps to complete the job in time and sometimes it is also cost-efficient. Ehermes' is using linkages to improve the business process to effectively produce goods and services.

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2 years ago

Type of power based on manager's ability to influence employees with something of value to them.

frosja888 [35]

Answer:

incentive or reward

Explanation:

incentive pay, time and a half pay for overtime are examples

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2 years ago

4. Each year, Holly's Best Salad Dressing, Inc. (HBSD) purchases 50,000 gallons of extra virgin olive oil. Ordering costs are $1

Norma-Jean [14]

Answer:

HBSD should take the discount because it will

lead to as savings of $1,120.00

Explanation:

step 1

Determine the the inventory cost of EOQ

EOQ =√ (2× Co× D)/Ch

= √(2× 100× 50,000)/ 80% × $0.50

= 5,000 units

Inventory cost = Purchase cost + Ordering cost + carrying cost

Purchase cost = 50,000 × $0.50 = 25,000.00

Ordering cost = (50,000/5000)× 100 = 1,000

carrying cost = (5000/2) × $0.50 × 80% = 1,000

Total cost 27,000.

Step 2

Determine the inventory cost for order of 10,000 gallons

Order of 10,000 gallons

Purchase cost = $(0.50-0.03) × 50,000 = 23,500.

Ordering cost = (50,000/10,000) × 100 = 500

Carrying cost = (10000/2) × $(0.50-0.03)× 80% =1880

Total cost 25,880.

Step 3

Compare the cost under the two options

HBSD should take the discount because it will

lead to as savings of $1,120.00 i.e (927,000 - 25,880.)

6 0

2 years ago