Answer:
3 times
Explanation:
Times Interest earned is a financial ratio that shows how many times an entity's net income or earnings before interest and taxes can be used to settle the company's interest expense.
It is given as the ratio of earnings before interest and tax to interest expense.
Earnings before interest and taxes is the difference of sales and operating costs.
= $400,000 - $362,500
= $37,500
Hence, the firm's times-interest-earned (TIE) ratio
= $37,500/$12,500
= 3
Answer:
The present value of security is $2300
Explanation:
The value or price of the perpetuity today is calculated by dividing the constant cash flow it provides per period by the interest rate or the rate of return (r). Thus the price of this perpetuity according to the formula will be,
Value of perpetuity = Cash flow / r
Value of perpetuity = 115 / 0.05
Value of perpetuity = $2300
Answer:
c. That business must be related to the taxpayer's present business for any expense ever to be deductible.
Explanation:
If the business is acquired, the expenses may be deducted immediately by a taxpayer engaged in a similar trade or business. The expenses may be deducted regardless of whether the business being investigated is acquired.
Explanation:
It is correct to say that we live in a globalized world, where there is a lot of competition in the business market and where the flow of information occurs very quickly. Therefore, there is a greater demand from society for companies to be active promoters of practices that will lead to the development of society and the maintenance of scarce natural resources.
Companies that act in an environmentally responsible manner will obtain the benefits of certifying to their stakeholders that they are active agents of transformation and prevention of the environment, which can be accomplished through environmental certifications, environmental management systems, compliance with environmental legislation, etc. , which ensures that companies have a better positioning in the market, attracts more consumers and investors, in addition to improving production processes with environmental management systems, which promotes continuous improvement in the company, reducing costs and waste.
I’m pretty sure it’s that the market for complementary goods increase
