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atroni [7]
3 years ago
8

A company's income before interest expense and income taxes is $575,000 and its interest expense is $145,000. Its times interest

earned ratio is:__________.a. 0.25 b. 2.73 c. 0.99 d. 3.72
Business
1 answer:
34kurt3 years ago
4 0

Answer:

3.96

Explanation:

A company's Time Interest Earned ratio shows us its ability to pay its debts.

The income before expenses is given as: $575000

The interest expenses = $145000

The question wants us to find time interest earned ratio. We get this by:

Company's initial income/interest expenses

= $575,000/$145,000

= 3.96

This is the correct answer to the question. The right answer was not listed in the options.

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Joe must pay liabilities of 1,000 due one year from now and another 2,000 due three years from now. There are two available inve
kari74 [83]

Answer:

1. 2,584

Explanation:

future payments: $1,000 in 1 year and $2,000 in 3 years

the present value of alternative I (one year bond):

$1,000 / 1.06 = $943.40

the present value of alternative II (first 2 years and then 1 year):

$2,000 / 1.065 = $1,877.93 ⇒ PV at year 2

PV at year 0 = $1,877.93 / 1.07² = $1,640.26

the total present value of both options = $943.40 + $1,640.26 = $2,583.66 ≈ $2,584

4 0
3 years ago
Barnegat Light sold 190,000 shares in an initial public offering. The underwriter's explicit fees were $68,000. The offering pri
Soloha48 [4]

Answer:

$1,398,000

Explanation:

Calculation for What is the best estimate of the total cost to Barnegat Light of the equity issue

Total cost = $68,000 + ($45 - $38)190,000 shares

Total cost = $68,000+($7)190,000 shares

Total cost = $68,000+$1,330,000

Total cost =$1,398,000

Therefore the best estimate of the total cost to Barnegat Light of the equity issue will be $1,398,000

4 0
3 years ago
Lisa Sumaya has decided to give up her full-time job to complete her master
ICE Princess25 [194]

Answer: Financial effects poses as economical risk while an improvement in career and better opportunity poses as potential economic benefit

Explanation:

One potential economic risk Lisa would have to face is that she would have issues with finances for the time being between when she resigned from her job, through her Master's and till she gets another job.

One potential economical benefit towards this decision is that she would have made an advancement in her career and would be at better place career wise and worth wise to compete for better jobs and improved pay from the place she left.

4 0
3 years ago
The higher a country’s gross domestic product (gdp), the more likely it is that the country is wealthy. is developed. has high i
irina1246 [14]

The higher a country’s gross domestic product (gdp), the more likely it is that the country is wealthy.

<h3>What is gross domestic product?</h3>

Gross domestic product is the total sum of final goods and services produced in an economy within a given period which is usually a year

The economic growth rate which measures wealth is the rate at which the nominal GDP of a country increases with the passage of time.

To learn more about GDP, please check: brainly.com/question/15225458

#SPJ4

4 0
2 years ago
Montana Mining Co. (MMC) paid $200 million for the right to explore and extract rare metals from land owned by the state of Mont
Natalka [10]

Answer:

b.  $14.7 million

Explanation:

In order to compute the asset retirement obligation, first we have to compute the expected cash flows which are shown below:

= Cash outflows × probability + Cash outflows × probability

= $10 million × 60% + $30 million × 40%

= $6 million + $12 million

= $18 million

Now the asset retirement obligation would be

= (Expected cash flows) ÷ (1 + interest rate)^ number of years

= ($18 million) ÷ (1 + 0.07)^3 years

=  ($18 million) ÷ 1.225043

= $14.7 million

3 0
3 years ago
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