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Tanzania [10]
4 years ago
15

Debtors are interested in the times interest earned ratio because they want to a.know the tax effect of lending to a corporation

b.be sure their debt is backed by collateral c.know what rate of interest the corporation is paying d.have adequate protection against a potential drop in earnings jeopardizing their interest payments
Business
1 answer:
ss7ja [257]4 years ago
4 0

Answer: d.have adequate protection against a potential drop in earnings jeopardizing their interest payments

Explanation:

The Times Interest Earned Ratio is a measure that allows for the analysis of if a company can keep up it's debt payments.

It is calculated by dividing the Earnings before Interest and Tax by the Interest Expense of the debt.

The higher the number, the better because it means that they can keep up debt payments several times over.

As Debtors therefore, this figure is important because missing a debt payment is very bad for credit ratings and this matrix helps them realise if they can keep paying for debt even if their Earnings drop.

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Project X has cash flows of $8,500, $8,000, $7,500, and $7,000 for Years 1 to 4, respectively. Project Y has cash flows of $7,00
kondaur [170]

Answer:

e. Project X has both a higher present value and a higher future value than Project Y.

Explanation:

The project X cash flows are higher in initial years than of project Y. The present value of project X cash flows will be greater than project Y. The time value of money of project X will be greater than Project Y.

The future value of Project X will also be higher than project Y because it has higher cash flows in earlier years. When future value will be calculated the project X will give the higher Future value than project Y.

4 0
3 years ago
(b) Cite 3 reasons for and 3 reasons against rebuilding Greensburg as a “green town.”
mamaluj [8]

Answer:

The following are 3 against reasons for the reconstruction of Greensburg as the "green city":

Explanation:

Following are the reasons and the counter reasons:

Reasons:

  • Its tornado was something which will never be large as ever before, in which the city has been harmed and 95% of his residences have been destroyed. It also offers you to recreate the green city.  
  • The creation of a green city would also enable many cities to the devastated area to integrate with green technology.  
  • The Greenburg would become an icon with style as well as a prototype for the building of a clean energy city.

Counter Reason:  

  • The green tech isn't cheap and it would put pressure on the public resources.  
  • When a tornado of the same size hit Greenburg, then nobody would cause a serious source of financial and private assets.  
  • The city should give priority to tornado refugee camps that are capable of protecting public goods instead of building a green culture.
6 0
4 years ago
13 chocalate bars cost 21 dollars. How many candy bars can you get with 1 dollar?
ankoles [38]
0.619047619047619 is how many you could get. So about .62
4 0
3 years ago
Which of the following is a service fee? an amount of money a bank charges?
aalyn [17]

Answer:an amount of money a bank charges for the use of an account.

Explanation:

When someone charges you money for them to do something it is called a service fee

7 0
3 years ago
You invest $3,000. You have speculated that you will earn an average of 7% on your initial investment each year. What do you exp
Ghella [55]

Answer: $5,901

Explanation:

7 0
3 years ago
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