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Ber [7]
3 years ago
7

Hsu Company reported the following on its income statement: Income before income taxes $420,000 Income tax expense 120,000 Net i

ncome $300,000 Interest expense was $80,000. Hsu Company's times interest earned is a.6.25 times b.5 times c.5.25 times d.8 times
Business
1 answer:
o-na [289]3 years ago
3 0

Answer:

a. 6.25 times

Explanation:

Times interest earned ratio = Earnings before income taxes / Total interest expense

Earnings before income taxes = Income before taxes + interest expense

Earnings before income taxes = $420,000 + $80,000

= $500,000

Total interest expense = $80,000

Therefore,

Times interest earned ratio = $500,000 / $80,000

= 6.25 times

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Collins Group The Collins Group, a leading producer of custom automobile accessories, has hired you to estimate the firm's weigh
hammer [34]

Answer: B.) 18.67%

Explanation:

WACC = Debt/(Depth +Equity)

Equity Details ;

Stock price = $15.25 per share

Total stock = 10,000,000

DEBT details :

Total bond = 40,000

Interest on bond = $875

WACC =(40,000×875) ÷ [(40,000 × 875)+(10, 000,000×15.25)]

WACC =[ 35,000,000 ÷ (35,000,000 +152500000) ]

WACC =35,000,000 ÷ 187500000

WACC = 0.18666666666666

WACC = 18.67%

6 0
4 years ago
Read 2 more answers
Of the measures of feasibility, _____ assesses tangible and intangible benefits to a company in addition to costs.?
erik [133]
Of the measures of feasibility,<span> economic feasibility </span>assesses tangible and intangible benefits to a company in addition to costs.
4 0
4 years ago
The _____ depicts the degrees and kinds of involvement a consumer brings to the purchase decision for different products. It als
Inga [223]

Answer: Kim-Lord model

Explanation: Some purchases made by consumers require a high degree of involvement such as cars, mobile phones etc on both cognitive and affective levels. Others do not. This phenomenon is explained by the Kim-Lord grid model of cognitive response from highly effective advertisements. The model states that purchase related decisions of consumers are based on or is highly influenced by affective and cognitive factors and that all aspects of advertising should be focused on these areas.

8 0
3 years ago
When the employees of a large maintenance and building repair company tried to organize a union, the company fired several of th
irinina [24]

Answer:

Union suppression tactics.

Explanation:

Union suppression tactics are used to avoid union from taking steps that cause productivity of organization or taking steps against the management. It is illegal to supress the union from organizing any protest or asking any question to manegement.

Employer take different steps to supress union are plant closings, refusing to hire pro-union applicants, firing or harassing union supporters and suing permanent strike replacements

Employer should avoid following steps to negotiate union smoothly instead:

  • Threaten: Employer should never retaliate or threaten employee to avoid union.
  • Interrogate: Never interrogate employees about their intentions or any activities.
  • Promise: Never promise anything to employee as it create high expectation and it lead to misunderstanding if it is not met.
  • Spying: Employees have the right to meet with the union representatives and “hear them out” without management interference, so employer should never spy against employee.

Employer should have regular communication with employee to avoid union at workplace.

8 0
3 years ago
Balance sheet and income statement data indicate the following: Bonds payable, 6% (issued 2000, due 2020) $1,200,000 Preferred 8
9966 [12]

Answer:

The correct option is A,5.72 times

Explanation:

The number of times that interest charges gives a sense of how financial stable is in its ability to pay interest on bonds as at when due.It is key consideration for prospective bondholders when assessing whether to buy bonds in a particular company

Number of times interest charges earned=net income before interest/interest

net income before interest charges=net income+interest charges

net income is $340,000

interest charges=$1,200,000*6%=$72,000

net income before interest charges=$340,000+$72,000=$412,000

number of times interest was earned=$412,000/$72,000=5.72

4 0
3 years ago
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