<span>The Indiana state statute on abortion conflicts with the federal statute on abortion, the federal statute will overrule the state statue because any any state or local laws that either directly or substantially conflict with any federal laws will always be preempted by the federal law.</span>
The maximum debt to capital ratio (measured as debt/total invested capital) the firm can use is 44.29%.
<h3>
Maximum debt to capital
ratio:</h3>
TIE:
TIE = EBIT / Interest
EBIT =$450,000 -$355,000
EBIT= $95,000
Interest:
4 = $95,000 / Interest
Interest = $95,000 / 4 = $23,750.
Amount of debt:
Amount of debt=$23,750 / .075
Amount of debt= $316.666.70
Debt Ratio:
Debt ratio= $316,666.70 / 715,000 ×100
Debt ratio=44.289%
Debt ratio=44.29%(Approximately)
Inconclusion the maximum debt to capital ratio (measured as debt/total invested capital) the firm can use is 44.29%.
Learn more about debt to capital ratio here:brainly.com/question/16820767
Answer:
Net income= $33 million
Explanation:
A leveraged buyout is a buyout of an entity by it's own managers/board members mostly through debt financing. Now the expected sales after the buyout is 500 million, we are asked to calculate net income only in the first year. First of all lets see what net income is. Net income is the remaining amount of income after having paid all the expenses which is mostly the residual income available for either distribution to shareholders or transfer to retained earnings.
The formula for net income is as follows:
Net income/profit= Sales revenue - COGS - Administrative expenses- depreciation and amortization - Interest expense - Tax
Let first calculate COGS & other administrative expense, depreciation and interest expenses first.
COGS & ADMIN: 500*0.6=300 m
Depreciation: 500*0.05 =25m
Interest expense for the year: 1500 * 0.08= 120m
Now lets substitute values in the formula mentioned above:
Income before taxes: 500m - 300m - 25m - 120m
Income before taxes: 55m
Income after taxes; 55m - 22m (taxes= 55*40%)
Net income= $33 million
Answer:
For Economy X, the natural rate of unemployment <u>is growing normally at</u> 5%. This rate is not due to <u>recession</u> factors. It applies <u>to 10% during recession</u>.
Explanation:
Given:
The unemployment rate in Economy X when it is growing normally is 5%. When Economy X is in a recession, the unemployment rate is 10%
We need to Rearrange words and fill in the blanked spaces in order to complete the paragraph.
For Economy X, the natural rate of unemployment <u>is growing normally at</u> 5%. This rate is not due to <u>recession</u> factors. It applies <u>to 10% during recession</u>.
