the federal advisory council of the federal reserve decides of any changes to the money supply are needed/true or false

Doug's Boat Shop, Inc. reports operating income of $260,000 and interest expense of $31,200. The average common stockholder

SCORPION-xisa [38]

Answer:

1. Interest coverage ratio=8.33

2. debt stockholder ratio=0.624

3. debt ratio=0.21

Explanation:

Leverage ratio is a financial tool used to determine a company's level of debt and it's ability to handle debt without going bankrupt.

1. Consider the interest coverage ratio formula;

interest coverage ratio=operating income/interest expense

where;

operating income=$260,000

interest expense= $31,200

replacing;

interest coverage ratio=260,000/31,200=8.33

2. Consider the debt to equity ratio formula;

debt to equity ratio=debt/stockholder equity

where;

debt=interest expense=$31,200

stockholder equity= $50,000

replacing;

debt stockholder ratio=31,200/50,000=0.624

3. Consider the debt ratio formula;

debt ratio=debt/assets

where;

debt=interest expense=$31,200

average assets=(beginning asset balance+ending asset balance)/2

average assets=(115,000+180,000)/2=$147,500

replacing;

debt ratio=31,200/147,500=0.21

3 0

3 years ago

A U.S.-owned car factory in Mexico produces $5 million of cars. $2.5 million of these cars are sold in Mexico and the other $2.5

Dahasolnce [82]

Answer:

The amounted contributed to U.S.GDP is $2 million

Explanation:

First and foremost, the question reiterated that $1 m is due to U.S-owned equipment company and U.S.managers working in Mexico,this is where the key to unlocking the question lies.

On the basis that the money is shared equally between the equipment company and the U.S managers working in Mexico,each group gets $500,000 which is an input for the car manufacturer. However, $2.5m worth of cars are sold to U.S-an output ,deducting the $500000 due to the managers from the output value gives $2m

7 0

3 years ago

Your uncle is about to retire, and he wants to buy an annuity that will provide him with $75,000 of income a year for 20 years,

Nataly_w [17]

Answer:

The annuity will cost him $963,212.95.-

Explanation:

Giving the following information:

Cash flow= $75,000

Interest rate= 0.0525

n= 20

First, we need to calculate the final value. We will use the following formula:

FV= {A*[(1+i)^n-1]}/i + {[A*(1+i)^n]-A}

A= annual cash flow

FV= {75,000*[(1.0525^20) - 1]/0.0525} + {[75,000*(1.0525^20)] - 75,000}

FV= 2,546,491.88 + 133,690.82= $2,680,182.70

Now, the present value:

PV= FV/(1+i)^n

PV= 2,680,182.70/(1.0525^20)

PV= $963,212.95

4 0

3 years ago

A(n)_____a0 is a misunderstanding; a mistaken thought or idea.

lara31 [8.8K]

Answer: misconception

Explanation:

A misconception is simply a misunderstanding, a mistaken thought or idea. Misconception is an opinion or a view by s person which is incorrect based on the faulty thinking of the person.

For example, Jane will finish high school the following year and therefore, won't need to further her education. This is an example of misconception.

5 0

3 years ago

Consider the market for portable air conditioners in equilibrium. a summer of unseasonably cool weather would cause:______

Julli [10]

Consider the market for portable air conditioners in equilibrium. A summer of unseasonably cool weather would cause both the equilibrium price and quantity to decrease. A market-clearing price, often referred to as an equilibrium price, is the consumer cost associated with a good or service when supply and demand are equal or nearly equal.

The manufacturer or vendor is free to transfer as many units as they like, and the consumer is free to access as many units as they like. By setting the supply function to equal the demand function, Qs = Qd, you may determine the equilibrium price.

To learn more about equilibrium, click here

brainly.com/question/14480835

#SPJ4

4 0

2 years ago