Answer:
(a) 62%
(b) 3.83 times
(c) Yes
Explanation:
(a) Ellie's debt ratio:
= Total Debt ÷ Total assets
= $39 million ÷ $63 million
= 0.62 or 62%
(b) Ellie's times interest earned ratio:
= Interest ÷ EBIT
= $23 million ÷ $6 million
= 3.83 times
(c) Yes, it has enough times interest ratio.
If Interest expenses increased to $7 Million, then
Company could easily raise more debt to finance additional funding needs.
<span>She has fixed costs of $250.
Her variable costs are $1,000 for the first thousand posters,
Her variable costs are $800 for the second thousand
Her variable costs are $750 for each additional thousand posters.
To calculate Average fixed cost that is AFC per poster we need two factors: Total fixed cost = 250 and Number of poster = 1000
So now AFC will be (250/1000) that is 0.25.</span>
The interest rate is 7%.
<u>Solution:</u>
The real rate of interest is always above the nominal interest rate when inflation is positive. In this case, we are told inflation is 3%. Since the real rate of return is the nominal interest rate minus inflation, we need a nominal interest rate of <u>5%+3%=8%</u> to get a real interest rate of 5%.
To calculate the real interest rate subtract the inflation rate from the nominal interest rate. Mathematically it looks like this The real interest rate is the nominal interest rate minus the inflation rate. Creeping inflation is a type of inflation in which the price level rises steadily at a moderate rate over an extended period of time.
Learn more about The interest rate here:-brainly.com/question/25793394
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Answer:
$1,094.50
Explanation:
Regular pay is $20.50
Over time pay is $20.50 x 1.5 = $30.75
Tommy earned as follows.
Regular hours : 40 x $20.50 = $820
Overtime hours: 9 x $30.75 =$274.50
Total amount earned
= $820 + $274.50
=$1,094.50
