Answer:
C) Dividing income before interest expense and income taxes by interest expense.
Explanation:
Times interest earned is the interest coverage ratio. This explains how many times a company is able to cover its interest expense as relative to its income.
This is calculated by Dividing income before interest expense and income taxes by the interest incomes. This basically conveys signals about the performance of the company and its solvency by finding a performance measure of how many times a company can pay off its debt obligations.
A higher interest times earned metric means a healthier firm.
Hope that helps.
Answer:
misguided because the enhanced output from specialization based upon comparative advantage is restricted.
Explanation:
Both countries would have benefited from trading in what the goods they have comparative advantage. Canada would have benefited from the U.S television and magazine programs, while the U.S would have gained by allowing food imports from canada.Goin by the by the theory of comparative advantage, each country benefits by exchanging those goods they have comparative advantage.
Answer:
both Sue and Tessa gain 0.3; 0.50
Explanation:
Sue's production possibilities frontier:
Sue's opportunity cost:
- opportunity cost of producing caps = 21 / 70 = 0.3 jackets
- opportunity cost of producing jackets = 70/21 = 3.33 caps
Tessa's production possibilities frontier:
Tessa's opportunity cost:
- opportunity cost of producing caps = 25 / 50 = 0.5 jackets
- opportunity cost of producing jackets = 50/25 = 2 caps
Sue should produce caps and Tessa jackets:
total production = 70 caps (Sue) + 25 jackets (Tessa), if they trade they will both win because each specialized in producing the good in which they have a comparative advantage (lower opportunity costs). If Sue traded and received 21 jackets, she would still have 28 caps left. If Tessa traded and received 50 caps, she would still have 10 jackets left.
