Answer:
TVG
Times Interest Earned Ratio (TIER) = Earnings Before Interest & Taxes divided by Interest Expense
= $300,000/$$80,000 = 3.75 times
Explanation:
a) TVG Income Statement:
Revenue $3,000,000
Cost of goods sold 2,500,000
Gross profit $500,000
Depreciation 200,000
EBIT $300,000
Interest Expense 80,000
Pre-tax Income $220,000
b) TVG's TIER shows the number of times that its earnings before interest and taxes covers the interest expense. It shows the ability of the TVG to settle its maturing debt obligations from current earnings. It is an important financial performance measure which potential investors in TVG will use to gauge the ability of TVG to meet financial obligations from the earnings it generates.
Answer:
3.63%
Explanation:
Semiannual coupon payment
= $100 ÷ 2 = $50[($1,000 × 10%) ÷ 2]
The total number of compounding period = 2periods per year × 3 years = 6 periods.
By entering the following data on a financial calculator, rate is calculated as 1.81%.
Semiannual yield = 1.81%
Annual yield = 1.81% ×2 = 3.63%
Answer:
increases as more people use them.
Explanation:
Network economics refers to a business that uses network effect. It is also called Netromix. The value of a good is increased as the number of buyers increases.
The business will benefit from feedback received by customers that use their products.
For example online services like LinkedIn and Twitter benefit from this type of framework. The more users that use these software th more the business gains.
Answer:
4.18%
Explanation:
The formula for used for this calculation is given as
Future value = Present( Initial) value (1 + r)ⁿ
Where n = number of years of the investment = 13 years
Future value (Amount of the investment after 13 years)= $5,280
Present ( Initial) value (Amount of the investment before 13 years) = $3,100
r = rate of return
The formula for r is derived as:
r = (Future value/ Present (initial) value)¹/ⁿ- 1
r = ($5,280/$3,100)¹/¹³ - 1
r = 1.0418139573 - 1
r = 0.0418139573
r is always in percentage format
r = 0.0418139573 × 100
r= 4.18139573%
Approximately, the rate of return annually for 13 years = 4.18%
<span>Heavy speculation is a bad idea in any market since it has a tendency to inflate prices to unrealistic levels. That is basically what many investors prior to the Great Depression did when they thought the market would keep going higher and higher. They borrowed money, sold their houses, etc.. to buy into the stock market thanks to that kind of speculation without even considering the underlying reasons for why the market is there in the first place.</span>
