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3 years ago

Higher debt utilization ratios will always increase a firm's return on equity given a positive return on assets.

Business

1 answer:

Nikitich [7]3 years ago

6 0

Answer:

A. True

Explanation:

The debt utilization ratios is used to determine the comprehensive picture for the long term financial health of the company or the solvency of the company.

The debt ratio is defined as the financial ratio which shows the percentage of the assets of an organization which are provided through a debt. When the ratio is higher, the risk involved with the operation of the firm is more.

Thus, for a high debt utilization ratio, it will always increase the return of the organization on the equity for a positive return on the assets of the organization.

Thus, the answer is TRUE.

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Lionel is an unmarried law student at State University Law School, a qualified educational institution. This year Lionel borrowe

Marizza181 [45]

Answer:

The correct answer is $1,056.

Explanation:

According to the scenario, the computation of the given data are as follows:

If AGI is less than $70,000 than maximum deduction = $2,500

Then the second Phase is start at $70,000 and ends at $85,000.

Modified AGI = $74,000

Interest on loan = $1,440

So, we can calculate the amounts Lionel can deduct for interest on higher-education loans by using following formula:

Deduction for Interest = Total interest paid - Amount disallowed

Where, Amount disallowed = ($74,000 - $70,000) ÷ ($85,000 - $70,000) × $1,440

= ($4,000) ÷ ($15,000) × $1,440

= $384

So, by putting the value, we get

Deduction for Interest = $1,440 - $384

= $1,056

6 0

3 years ago

PRODUCT POSSIBILITIES QUESTION 20 point

Nina [5.8K]

The answer is all but D.
the company cannot produce a combination of x,y when the plot is outside the line

5 0

3 years ago

Read 2 more answers

Bond valuation [LO14-2] Your investment department has researched possible investments in corporate debt securities. Among the a

Sonbull [250]

Answer:

Bond Valuation

Other things being equal, the bond issue that offers the most attractive investment opportunity if it can be purchased at the prices stated is:

= BB Corp. bonds.

Explanation:

a) Data and Calculations:

Maturity period = 20 years

Issue date = January 1, 2021

Maturity date = December 31, 2040

Company Bond Price Stated Rate Annual Interest FV

1. BB Corp. $ 107 million 15 % $15 million $3,518,371,301.23

2. DD Corp. $ 100 million 14 % $14 million 2,827,106,832.58

3. GG Corp. $ 93 million 13 % $13 million 2,260,756,079.53

From an online financial calculator, the future values of the bonds are:

N (# of periods) 20

I/Y (Interest per year) 15

PV (Present Value) 107000000

PMT (Periodic Payment) 15000000

Results

FV = $3,518,371,301.23

Sum of all periodic payments $300,000,000.00

Total Interest $3,111,371,301.2

N (# of periods) 20

I/Y (Interest per year) 14

PV (Present Value) 100000000

PMT (Periodic Payment) 14000000

Results

FV = $2,827,106,832.58

Sum of all periodic payments $280,000,000.00

Total Interest $2,447,106,832.58

N (# of periods) 20

I/Y (Interest per year) 13

PV (Present Value) 93000000

PMT (Periodic Payment) 13000000

Results

FV = $2,260,756,079.53

Sum of all periodic payments $260,000,000.00

Total Interest $1,907,756,079.53

8 0

3 years ago

The Delphi method is __________.

Nadusha1986 [10]

Answer:

B. a qualitative forecasting technique in which experts work individually to develop forecasts.

Explanation:

The Delphi method is a forecasting process framework based on the results of multiple rounds of questionnaires sent to a panel of experts. Several rounds of questionnaires are sent out to the group of experts, and the anonymous responses are aggregated and shared with the group after each round.

The experts will answer without brainstorming with others

5 0

4 years ago

Jonathan cowan is upset because he was passed over for a promotion he had really worked hard for. in response to his anger towar

Dmitry_Shevchenko [17]

I guess the correct answer is deviant workplace behavior.

Jonathan Cowan is upset because he was passed over for a promotion he had really worked hard for. In response to his anger toward the manager and the company, he has started gossiping about the manager with his colleagues and assigning blame on him unnecessarily. Jonathan's behavior is an example of deviant workplace behavior.

7 0

3 years ago