Answer:
Classic Music, Inc.
C. 6.62 times
Explanation:
a) The times-interest-earned (TIE) ratio measures a company's ability to meet its debt obligations based on its current income. It is calculated as earnings before interest and taxes (EBIT) divided by the total interest payable on bonds and other debts.
b) The EBIT is $437,000 (Net Income + Income Tax and Interest Expenses).
c) Therefore, the TIE is equal to 6.62 times ($437,000/$66,000).
Given:
Sales Revenue = 150,000
ROI = 12%
turnover = 3
ROI = Margin * Turnover Margin
12% = Margin * 3
12%/3 = Margin
4% = Margin
Margin = Net Operating Income / Sales
4% = Net Operating Income / 150,000
4% * 150,000 = Net Operating Income
6,000 = Net Operating Income
Answer:The holder of a call or put option must exercise the right to sell or buy an asset.
Explanation:The holder of a right or put option has the right to exercise that power but it is not a mandatory right,he or she can decide not to exercise that power.
All other options are correct, a call or gives the holder the right to buy an asset at a certain date and at a specific price.
A put option gives the holder the right to sell an asset at a specific date and price.
The holder of a forward contract is obligated to buy or sell an asset.
