1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Evgesh-ka [11]
2 years ago
12

Which of the following transactions or events would have no immediate effect on the times interest earned ratio but will cause d

ebt to equity ratio to decrease?
a. issuing new debt
b. issuing new equity
c. having a stock split
d. recording large contingent liability for lawsuit
Business
1 answer:
Gemiola [76]2 years ago
7 0

Answer:

b. issuing new equity

Explanation:

debt to equity ratio = Total debt/ Total equity x 100

and

interest earned ratio = Operating Income ÷ Interest charge

<u>Ways to decrease debt to equity ratio :</u>

1. Increase equity (no effect on interest earned ratio)

2. Decrease debt (increases interest earned ratio)

thus,

issuing new equity have no immediate effect on the times interest earned ratio but will cause debt to equity ratio to decrease.

You might be interested in
Free Motion Enterprises paid a $2.20 per share annual dividend last week. Dividends are expected to increase by 3.75 percent ann
Tems11 [23]

Answer:

$20.29

Explanation:

The computation of the today share price is shown below:

= Next year dividend ÷ (Required rate of return - growth rate)

where,

Next year dividend

= $2.20 + $2.20 × 3.75%

= $2.20 + 0.0825

= $2.2825

The other items values would remain the same

So, the today price would be

= $2.2825 ÷ (15% - 3.75%)

= $2.2825 ÷ 11.25%

= $20.29

6 0
3 years ago
Jurisdiction E spends approximately $7 million each winter on snow removal. The jurisdiction is considering adding a new income
frez [133]

Answer:

'Taxes' can be defined as a compulsory contribution to the state's or country's revenues, which are levied by the governments on personal incomes of individuals or profits of the corporate, or on some transactions.

Taxes are the main source of revenues for any government, through which it receives the necessary funds to spend on various activities it undertakes for public welfare and maintaining the law and order and security of the nation.

Many theorists believe that every tax should be evaluated on certain standards and the following four standards have been mentioned for evaluating whether taxes are good or not:

  1. Taxes should be sufficient to fulfill the government's requirements
  2. Taxes should be convenient for the government to implement and for the citizens to pay
  3. Taxes should be efficient economically
  4. Taxes should be fair

There may be certain provisions introduced in the federal tax system, which are targeted to induce certain behaviors or shift people's attention towards certain activities. These provisions are called tax preferences

Does this proposed change in Jurisdiction E's tax law meet the definition of a tax preference? Explain briefly.

In the given question, the decision of the jurisdiction to give deduction to the people for the snow removal equipment they purchase, is definitely a tax preference as it induces people to invest in snow removing machines, as they are getting full deduction of such expense in income taxes.

By having this provision, the government is motivating people to invest in these machines, and people also have the benefit of having such machine with them, and also getting tax deduction for such expense, so getting such machine almost free (this applies to people who have incomes in such tax bracket only). Thus it is the way of government in encouraging people to buy snow removing machines and reduce the burden on the government. Thus it is clearly a tax preference.

Jurisdiction E forecasts that the proposed change will decrease its annual tax revenues by $250,000 but will improve the jurisdiction's financial condition by $300,000. On what assumptions is this forecast based?

The forecast regarding decrease in annual tax and improvement in financial condition is based on the assumptions of people taking benefit of such a provision, and actually investing in snow removing machines.

The jurisdiction believes that people will purchase the machines and make claims for deductions, effecting the tax revenue by $250,000. But at the same time, as many people will themselves remove the snow, the government doesn't have to spend so much on snow removal and thus make the savings of $300,000

6 0
3 years ago
PLEASE HELP
olasank [31]

The correct answer is A. A publisher prevents its employees from using office computers for personal use.

Explanation

Internal compliance is a set of strategic internal rules and measures focused on employee behavior and ethics. This internal Compliance was obtained with the aim of improving business practices aimed at raising the quality level of results, goals, and objectives. According to the above, the correct answer is "A. publisher prevents its employees from using office computers for personal use." because this is an example of a business rule that pre-empted the misuse of company equipment preventing its employees from using it for purposes other than corporate ones.

8 0
2 years ago
Most global firms find it is better to have expatriates rather than local staff at the management positions of their foreign ope
pshichka [43]

Answer:A True most global firms find it is better to have expatriates rather than local staff at management positions to their foreign operations because expatriates require less training and development.

8 0
3 years ago
Most resources are nonrenewable, and wants and needs are limited. This is an example of?
dimulka [17.4K]

Answer:

scarcity.

Explanation:

Scarcity can be defined as an economical problem that gives the relationship between non-renewable (limited) resources and the limitless wants and needs of consumers.

Basically, it's very important that producers of goods and services make decisions that would help them on how to efficiently allocate scarce or limited resources, in order to meet the unending requirements, wants and needs of consumers.

In Economics, an example of scarcity is that most of the resources used for the manufacturing of finished goods and services are nonrenewable, and as a result, the wants and needs of the end users or consumers are limited. Thus, economists would advise that economies should decide on what to produce, how to produce, when to produce and for whom to produce due to the finite and limited nature of resources i.e the concept of scarcity.

3 0
2 years ago
Other questions:
  • What is the square root of 5
    12·1 answer
  • Consider two spices, cumin and paprika, to be substitutes, a decrease in the supply of paprika, should cause an increase in the
    6·1 answer
  • Water that can be reused without purification for watering your yard and can help reduce overall water usage is called _________
    6·1 answer
  • Dorothy Crusher is a licensed CPA. During the first month of operations of her business (a sole proprietorship), the following e
    11·1 answer
  • The standard deviations of individual stocks are generally higher than the standard deviation of the market portfolio because th
    6·1 answer
  • Which is a feature of a perfectly competitive market?
    6·1 answer
  • Cretically analyse the difference and the point of convergence between floor inspection and functional inspection
    12·1 answer
  • What is the purpose of capital controls?
    9·1 answer
  • 11.(03.03 LC)
    15·2 answers
  • if, in the market for money, the quantity of money demanded exceeds the money supply, the interest rate will
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!