Answer:
b. 4.02
Explanation:
Time interest earned is actually tells us how many times it's interest is the company earning so that formula for times interest earned is
Earnings before income and tax/Interest expense.
So we have to add interest expense and tax expense back to net income.
130,000+50,000+21,000=201,000
201,000/50,000=4.02
Answer:
$366,667
Explanation:
Average stock can be regarded as stock at the beginning of the period as well as stock towards ending of it
Given:
annual sales =$1,840,000
annual stock turnover =5.4.
average stock can be calculated as
average stock =annual sales/
annual stock turnover
= 1,840,000/ 4.5
= $366,667
Hence the average stock in a department is $366,667
Answer:
A). Decrease the money supply so interest rates rise.
Explanation:
This could be explained simply because change in money supply results in changes in price levels and/or a change in supply of goods and services. An increase in money supply results in a decrease in the value of money because an increase in money supply causes a rise in inflation. As inflation rises, the purchasing power, or the value of money, decreases.
A change in interest rates is one way to make that correspondence happen. A fall in interest rates increases the amount of money people wish to hold, while a rise in interest rates decreases that amount. A change in prices is another way to make the money supply equal the amount demanded.
Deposit (PV): $10,000
Years between the 18th month and the fifth year (n) = 3.5
(I)=7% yearly interest rate
Simple interest approach accumulated value equals P*(1+(i*n)).
=1000*(1+(7%*3.5))
=1245
Thus, the total value at the end of five years will be $1245.
Compound interest method accumulated value equals P*(1+i)n
=1000*(1+7%)^3.5
=1267.19
Therefore, the total value after five years will be $1267.19.
Learn more about simple interest here ;
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Answer:
= $406.6
Explanation:
To calculate return of portfolio we first calculate weight of each asset
this can be done by finding total investment and then dividing each asset by total investment.
Total investment = 8000 + 7000 + 5000 = $20,000
General Dynamics 8000/20000 = 0.4 = W1
Starbucks 7000/20000 = 0.35 = W2
Nike 5000/20000 = 0.25 = W3
Now for portfolio return we can use the formula
P(r) = W1 * (Return on W1 asset) + W2 * (Return on W2 asset) + W3 * (Return on W3 asset)
So,
P(r) = 0.4 * (0.0680) + 0.35 * (-0.0152) + 0.25 * (-0.0062)
This gives us
Total Return % = 0.02033 or 2.033%
Simply multiply this cumulative weight to total portfolio worth
Total Return in $ = 0.02033 * 20000 = $406.6
Hope that helps.
