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joja [24]
3 years ago
12

A company's interest expense is $15,000. Its income before interest expense and income taxes is $86,250. Its net income is $31,9

00. The company's times interest earned ratio equals:_______
a. 0.47.
b. 5.75.
c. 0.37.
d. 0.17.
e. 2.70.
Business
2 answers:
Ad libitum [116K]3 years ago
7 0

Answer:

b. 5.75.

Explanation:

The times interest earned is the number of times the net income or earnings before interest and taxes can be used to settle the interest expense of an entity.

It is given as the ratio of the earnings before interest and taxes to the interest accrued.

Given that

Interest expense = $15,000

Income before interest expense and income taxes = $86,250

The company's times interest earned ratio

= $86,250/$15,000

= 5.75

It means that the company's earnings before interest and taxes can settle the interest expense 5.75 times.

den301095 [7]3 years ago
5 0

Answer:

b. 5.75

Explanation:

Times Interest earned ratio is the measure of ability of a company to pay the interest on its debts. It is the ratio of earning before interest and tax and interest expense as below.

Times Interest Earned Ratio = Earning before interest and tax / Interest Expense

Times Interest Earned Ratio = $86,250 / $15,000

Times Interest Earned Ratio = 5.75 times

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Blababa [14]

Answer:

1. Continue to serve every dog that is brought to Bow Wow as well as possible, since customer service is a high priority and 2. Identify this as a threat and adopt a more rigorous screening process before accepting dogs, as well as charge more for dogs who have had a behavioral incident during a previous stay.

Explanation:

Bow Wow has as its best quality in the market the ability to treat well challenging dogs. This is what makes Bow Wow different. Focusing on not losing that characteristic, it would be paramount to maintain the ability to serve every dog as best as possible. Even the challenging ones. However, it is not wise from a business point of view to charge the same from dogs that have very different degrees of attention needs. Hence, it would be proper to charge more from the owners who have more difficult dogs. As Bow Wow will not lose its reputation, those owners will see that its worth the extra cost at the same that its not possible to bring to another daycare.  

5 0
3 years ago
What is a sound recorder used for
VLD [36.1K]
It is used to record sounds that you can hear.
3 0
3 years ago
sarah has two dependent children who attend sun valley day care while she is at work. she will claim a $1,200 credit for child a
castortr0y [4]

If Sarah is in the income tax band that has a marginal rate of 24%, the amount of the deduction that must be taken in order to generate a tax advantage that is equivalent to that provided by the child care credit is x = 5000.

This is further explained below.

<h3> What amount of deduction is necessary to provide a tax benefit that is equal to that provided by the child care credit if Sarah is in the 24% marginal income tax bracket?</h3>

Generally, The proportion of an individual's income that must be paid in taxes is referred to as that person's marginal tax rate.

The average tax burden may be conceptualized as the entire tax burden expressed as a proportion of the income that is produced.

Tax: Taxes are payments to the government that is required of all citizens, whether they be people or companies.

In conclusion,

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Amount of money needed for an investment

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6 0
2 years ago
You are the CFO of a major pharmaceutical firm. A division manager has presented senior management with an investment opportunit
DochEvi [55]

Answer: $2.1 million

Explanation:

It is mentioned the project is independent of the outcome of general market  which means that

=> beta = 0

Using the CAPM formula which is,

r=rt + B* (rm -rf)

=> r = 3% + 0*(12%-3%) = 3%

Expected value of Project in one year = $1 billions * 0.1

Expected value of Project in one year = $100 millions

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NPV = 100/ (1 + 0.03) - 95

NPV = 97.1 - 95

NPV = $2.1 million

4 0
3 years ago
Read 2 more answers
In an Internal Service Fund, the expectation is that:_____.A. Each year's revenues should equal each year's expenses because the
Elis [28]

Answer:

In an Internal Service Fund, the expectation is that:_____.

A. Each year's revenues should equal each year's expenses because the revenues are simply an allocation of that year's expenses.

Explanation:

There are two proprietary funds used in governmental accounting.  One is the internal service fund.  The other one is the enterprise fund.  The internal service fund tracks the goods or services rendered by a service department to other governmental departments.  It is established on a cost reimbursement basis.  This is why the expenses for the year are expected to equal the annual revenue.

7 0
3 years ago
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