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intext:"Jared's Co. has total assets of $60,000 and total liabilities of $40,000. Its debt-to-equity ratio is"

fomenos

Answer:

Debt to Equity ratio = 2

Explanation:

The debt to equity ratio is a financial ratio to measure the proportion of debt financing in a company's capital structure in relation to the shareholders' equity. The debt to equity ratio can be calculated as follows,

Debt to Equity ratio = Total Liabilities / Total Equity

To calculate the value of total equity, we will use the basic accounting equation which is,

Total assets = Total Liabilities + Total Equity

60000 = 40000 + Total Equity

Total Equity = 60000 - 40000 = $20000

Debt to Equity ratio = 40000 / 20000

Debt to Equity ratio = 2

7 0

4 years ago

An individual investor who wishes to borrow money to buy stocks must open a A) signature account. B) margin account. C) joint ac

Sergeeva-Olga [200]

Answer:

B) margin account.

Explanation:

An individual investor who wishes to borrow money to buy the stocks must open a marginal account which is lent by the broker to the customer for the purchase of the stocks and the financial products. The accounts is of a collateralize for the securities and the purchases of the assets.

3 0

3 years ago

BSW Corporation has a bond issue outstanding with an annual coupon rate of 7 percent paid quarterly and four years remaining unt

Furkat [3]

Answer:

$788.35

Explanation:

In this question, we use the present value formula which is shown in the spreadsheet.

The NPER represents the time period.

Given that,

Future value = $1,000

Rate of interest = 14% ÷ 4 quarters = 3.5%

NPER = 4 × 4 quarter = 16 years

PMT = $1,000 × 7% ÷ 4 quarters = $17.50

The formula is shown below:

= PV(Rate;NPER;PMT;FV;type)

So, after solving this, the answer would be $788.35

4 0

3 years ago

If demand is inelastic, a drought around the world would ___the total revenue that farmers receive from the sale of grain.

Elena L [17]

Answer:

Raises ;

C. A drought in Kansas is not significant enough to affect the worldwide price of grain.

Explanation:

Drought is a situation where there is shortage of water due to prolong absence of rainfall.

This is because, when Kansas has a drought, purchasers or buyers can substitute wheat from other places for Kansas wheat.

But, when the whole world has a drought, purchasers or buyers have no other suppliers of wheat to substitute. This means that, no area will have wheat so that the buyers can buy, because every area will be affected by the drought.

In this case,the demand for wheat is inelastic in the short run.

7 0

3 years ago

Read 2 more answers

Gilberto Company currently manufactures 50,000 units per year of one of its crucial parts. Variable costs are $2.00 per unit, fi

KonstantinChe [14]

Answer:

Net incremental cost of buying (10,000).  \

Gilberto Company should produced the parts internally . Doing so would saving its $10,000 per year

Explanation:

The relevant cash flow from the accepting the offer of the outside suppliers include

Extra variable cost of buying

Savings in direct fixed manufacturing overhead

Unit variable cost of making: =$2

$

Variable cost of external purchase ($3.2× 50,000) 160,000

Variable cost of making ($2× 50,000) (100,000 )

Extra variable cost of buying (60,000 )

Savings in direct fixed cost 50,000

Net incremental cost of buying  (10,000)

5 0

4 years ago