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Slav-nsk [51]
2 years ago
8

Companies HD and LD have the same tax rate, sales, total assets, and basic earnings power. Both companies have positive net inco

mes. Company HD has a higher debt ratio, and therefore a higher interest expense. Which of the following is correct?
a. Company HD has a lower equity multiplier.
b. Company HD has more net income.
c. Company HD pays more in taxes.
d. Company HD has a lower ROE.
e. Company HD has a lower times-interest-earned (TIE) ratio.
Business
2 answers:
iragen [17]2 years ago
8 0

Answer:

Company HD pays less in taxes

Explanation:

sukhopar [10]2 years ago
5 0

Answer:

Company HD pays less in taxes

Explanation:

In the case when the company HD and LD have the similar rate of tax, sales revenue,  etc even both have favorable net incomes also the company Hd contains greater debt ratio due to which it has more interest expense so that means company hd would pay less taxes

Therefore the above represent the answer

and, this is the answer but the same is not provided in the given options

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True Tomato Inc. makes organic ketchup. To promote its products, this firm decided to make bottles in the shape of tomatoes. To
Amanda [17]

Answer:

The answer is: Physical asset specificity

Explanation:

In a business to business relationship, physical asset specificity refers to an asset, or product or service designed to fit a particular or specialized customer's need.

In this case, True Tomato needs a very specific type of bottle that probably no other ketchup manufacturer may use or want to use. So their bottle supplier specifically manufactures the tomato shaped bottle to meet True Tomato's specific requirements.

3 0
2 years ago
Three individuals form Skylark Corporation with the following contributions: Cliff, cash of $50,000 for 50 shares; Brad, land wo
erastova [34]

Answer:

C. Ron’s basis in his stock is $27,000

Explanation:

Income recognized on services rendered $21,000

Add basis of $6,000

Ron stock basis $27,000

The property contributed by Ron is not considered insignificant compared to the value of the services he has rendered, which is why the entire contribution is counted as being for property.

Hence, the control requirement is satisfied and a valid § 351 transaction results. Ron’s stock basis is $27,000 [$6,000 (basis of cattle transferred) + $21,000 (income recognized on services rendered)]

4 0
3 years ago
Which psychographic or lifestyle trend does this study support
melisa1 [442]

Answer:

where is the study at?

Explanation:

3 0
3 years ago
Ed, an entrepreneur, wants to hire a human resource professional who can help him make decisions about who will or will not be a
Artyom0805 [142]

Answer: Personnel selection

   

Explanation: In simple words, personnel selection is a single term used for the collection of activities recruitment, hiring and acculturation. It involves appointing the suitable individual for the job vacant in the firm.

In the given case, Ed is hiring a human resource professional for his firm. Thus, from the above we can conclude that he should use the term personnel selection.

5 0
2 years ago
Boxer Industries worked on four jobs during its first year of operation: nos. 401, 402, 403, and 404. A review of job no. 403's
kkurt [141]

Answer:

Overhead= $6,000

Explanation:

Giving the following information:

Job 403:

Direct material=  $40,000

Total manufacturing costs = $50,000

Boxer applies overhead at 150% of direct labor cost.

Total manufacturing costs= direct material + direct labor + allocated overhead

50,000= 40,000 + (direct labor + allocated overhead)

(direct labor + allocated overhead)= $10,000

<u>We know that overhead is 50% higher than direct labor. In 100%, direct labor would de 40% and overhead 60%.</u>

direct labor=10,000*0.4= $4,000

Overhead= 10,000*0.6= $6,000

3 0
3 years ago
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