Answer:
Data for Question
<u>Debt</u> <u>Book Equity</u> <u>Market Equity</u> <u>Operating Income</u> <u>Interest Expense</u>
Firm A
500 300 400 100 50
Firm B
80 35 40 8 7
1.
Market debt-to-equity ratio = Debt of Firm / Market Equity
Firm A = 500 /400 = 1.25
Firm B = 80 / 40 = 2
2.
Book debt-to-equity ratio = Debt of Firm / Book Equity
Firm A = 500 /300 = 1.67
Firm B = 80 / 35 = 2.29
3.
Interest coverage ratio = Operating Income / Interest Expense
Firm A = 100 /50 = 2
Firm B = 8 / 7 = 1.14
4.
Firm B will have more difficulty meeting its debt obligations because it has higher debt equity ratio and lower interest coverage ratio than Firm A.
Answer:
The answer is: NO OPTION IS COMPLETE
Explanation:
Option A is totally wrong (the product should have been defective), but options B through F are incomplete.
They should have been:
B) The defendant must normally be engaged in the <u>business of selling</u> (or otherwise distributing) that product.
C) The product must be <u>unreasonably dangerous</u> to the user or consumer because of its defective condition (in most states).
D) The plaintiff must incur <u>physical harm</u> to self or property by use or consumption of the product.
E) The defective condition must be the <u>proximate cause</u> of the injury or damage.
F) The goods must not have been <u>substantially changed</u> from the time the product was sold to the time the injury was sustained.
Yes gathering more information enables the firm to forecast...
Answer:
D) all of the above
Explanation:
The AD curve shows the aggregate output level that should be for different kinds of goods have the inflation rate
It is downward sloping due to more inflation that raised the inflation rate due to this less spending should be there
Also it described how the inflation impacts the output for the short period of time
Therefore the option d is correct
Answer:
Stockholders' Equity
Common stock $200,000
Preferred stock $175,000
Paid-in capital in excess of par value
Common stock $60,000
Preferred stock $60,000
Retained earnings $375,000
Treasury Stock
Common stock -$20,000
Preferred stock -<u>$20,000</u>
Total stockholders' equity <u>$830,000</u>
