6.8 will be the debt-to-EBITDA ratio.
EBITDA* 8.5=Transaction Value
(Transaction value * 0.8) / EBITDA = 6.8
EBITDA, or earnings before interest, taxes, depreciation, and amortization, is a measure of a company's overall financial performance and is used as an alternative to net income in certain circumstances. However, EBITDA can be misleading because it does not reflect the cost of capital investments such as property, plant, and equipment.
This metric also excludes debt-related expenses by adding interest and tax costs to revenues. However, it is a more accurate measure of business performance as it is able to report profit before the effect of accounting and financial deductions.
Learn more about the debt-to-income ratio here: brainly.com/question/24814852
#SPJ4
Answer:
$5,225
Explanation:
Calculation for What should Tringali report as its deferred income tax liability as of the end of its first year of operations
Using this formula
Deferred income tax liability=Temporary difference-depreciation*Tringali's tax rate
Let plug in the formula
Deferred income tax liability= $20,900 * 25%.
Deferred income tax liability=$5,225
Therefore What Tringali should report as its deferred income tax liability as of the end of its first year of operations is $5,225
Answer: $460 billion, but the effect would be larger if there were an investment accelerator.
Explanation:
If the MPC = 0.75 and there is no investment accelerator or crowding out, then a $115 billion increase in the government expenditures would result in the shift in the aggregate demand curve right by:
= $115 billion ÷ (1 - 0.75)
= $115 billion ÷ 0.25
= $115 billion × 1/0.25
= $115 billion / 0.25
= $460 billion.
Therefore, there'll be a shift in the aggregate demand curve right by $460 billion, but the effect would be larger if there were an investment accelerator
Answer:
Instructions are listed below.
Explanation:
Giving the following information:
A machine costing $251,800 was purchased May 1. The machine should be obsolete after three years and, therefore, no longer useful to the company. The estimated salvage value is $3,400.
A) Straight-line:
Annual depreciation= (original cost - salvage value)/estimated life (years)
Annual depreciation= (251,800 - 3,400)/3= $82,800
B) Double declining balance:
Annual depreciation= 2*[(original cost - residual value)/estimated life (years)]
Year 1= (248,400/3)*2= 165,600
Year 2= 55,200
Year 3= 18,400
