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bagirrra123 [75]
3 years ago
7

Saffron Industries most recent balance sheet reports total assets of $42,000,000, total liabilities of $16,000,000 and stockhold

ers' equity of $26,000,000. Management is considering using $3,000,000 of excess cash to prepay $3,000,000 of outstanding bonds. What effect, if any, would prepaying the bonds have on the company's debt-to-equity ratio
Business
1 answer:
alexandr402 [8]3 years ago
7 0

Answer:

A) Prepaying the debt would cause the firm's debt-to-equity ratio to improve from .62 to .50.

Explanation:

The computation of the impact is as follows:

The Debt equity ratio is

= Total liabilities ÷ total equity

Now

Debt equity prior to payment is

= $16,000,000 ÷ $26,000,000

= 0.62

And,

Debt equity after payment is

= $13,000,000 ÷ $26,000,000

= 0.50

So here as we can see that the debt equity would be improved from 0.62 to 0.50

Therefore the correct option is a.

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The opportunity cost of obtaining more of one good is shown on the production possibilities frontier as the
Gekata [30.6K]

Answer:

a. amount of the other good that must be given up.

Explanation:

The mix of two goods or services can be accomplished in the frontier of production possibilities when all available resources and technologies are fully efficient and used. This indicates a mix of the two resources to a maximum.  

As we know that, the opportunity cost refers to the cost in which the best alternative is chosen among the available ones which can generate a better return so the one goods are considered while another cost is given up.

5 0
3 years ago
Consider a single-server queuing system. If the arrival rate is 82 units per hour, and each customer takes 36 seconds on average
Tanzania [10]

Answer:

The average # of customers in the line is 4.

Explanation:

arrival rate, x = 82/3600

                      = 0.023

service rate, y = 1/36

                        = 0.028

utilisation, p = x/y

                    = 0.023/0.028

                    = 0.821

average number of costomers = p^2/[1 - p]

                                                   = (0.821)^2/[1 - 0.821]

                                                   = 3.75

Therefore, The average # of customers in the line is 4.

6 0
3 years ago
Please explain how your past personal and professional experience make you a quality candidate for the position for which you ar
PolarNik [594]
If I was applying for a freelance job about writing about gems and geology for example, I would explain that I have over 40 years of professional experience as a practicing mainly field geologist with 19 years of it in a large producing open pit copper/molybdenum/gold/silver operation. I would stress that with so much field experience I am able to visualize many mining/geological situations and I am both very practical and very theoretical. Also, I would say that I have just written a book about the history of mining and geology so have considerable valuable writing experience plus doing some geological reports on the internet. Also, since I understand that such work could require talking to people in other countries and since Latin America has some valuable gems like emeralds,  and since I learned Spanish while travelling in Latin America, I will be able to do phone research for such mineral occurrences. 
3 0
3 years ago
After the closing entries are posted to the ledger, each expense account will have:
solong [7]
<h3>♫ - - - - - - - - - - - - - - - ~Hello There!~ - - - - - - - - - - - - - - - ♫</h3>

➷ Each expense account will have a 'zero balance.'

<h3><u>✽</u></h3>

➶ Hope This Helps You!

➶ Good Luck (:

➶ Have A Great Day ^-^

↬ ʜᴀɴɴᴀʜ ♡

6 0
3 years ago
On October 5, 2019, you purchase a $13,000 T-note that matures on August 15, 2031 (settlement occurs two days after purchase, so
yulyashka [42]

Answer:

a.  1.8716%

b.  $13,937.9955

Explanation:

The computation is shown below:

a. For accrued interest

= (Coupon rate ÷ 2) × (Before settlement days ÷ Total settlement days)

= (4.750% ÷ 2) × (145 days ÷ 145 days + 39 days)

= 2.3750% × 0.7880

= 1.8716%

b. Now the dirty price is

= Face value × (accrued interest percentage + current price quoted on the bond)

= $13,000 × (1.8716% + 105.34375%)

= $13,000 × 107.21535%

= $13,937.9955

By applying the above formulas we can get the accrued interest and the dirty price

3 0
3 years ago
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