Mathematics for Business and Finance

In the past year, TVG had revenues of $2.95 million, cost of goods sold of $2.45 million, and depreciation expense of $178,000.

Firdavs [7]

Answer:

3.5

Explanation:

Computation for the firm’s times interest earned ratio

Revenues$ 2.95 million

Cost of goods sold$ 2.45 million

Depreciation expense$ 178,000.00

Book values of Debt outstanding$ 1.15 million

Interest rate8.00

First step is to calculate for the EBIT

Using this formula

EBIT= Revenues -(Cost of goods sold +Depreciation expense$ 178,000.00)

EBIT=$2,950,000-($2,450,000+$178,000)

EBIT=$2,950,000- $2,628,000

EBIT=$322,000

Second step is to find the Interest

Using this formula

Interest =Debt outstanding with book value ×Interest rate

Let plug in the formula

Interest =$1,150,000×8%

Interest =$92,000

Now let find the firm’s times interest earned ratio

Using this formula

Firm’s times interest earned ratio=EBIT/INTEREST

Where,

EBIT=$322,000

INTEREST=$92,000

Let plug in the formula

Firm’s times interest earned ratio=$322,000/$92,000

Firm’s times interest earned ratio =3.5

Therefore the firm’s times interest earned ratio will be 3.5

7 0

4 years ago

The Blue Bird Bus Company in Georgia sells buses to the South African government. To South Africa, these buses are an example of

Stolb23 [73]

Answer:

Imports.

Explanation:

Globalization can be defined as the strategic process which involves the integration of various markets across the world to form a large global marketplace. Basically, globalization makes it possible for various organizations to produce goods and services that is used by consumers across the world.

The world trade organization (WTO) is an intergovernmental organization that set rules, policies and regulates global trade across the world.

In this scenario, the Blue Bird Bus Company in Georgia sells buses to the South African government. To South Africa, these buses are an example of imports.

An import can be defined as a type of trade which typically involves the purchase of goods and services from a foreign country for domestic use.

7 0

3 years ago

Suppose the spot exchange rate for the Canadian dollar is Can$1.12 and the six-month forward rate is Can$1.14.

andreyandreev [35.5K]

Answer:

Explanation:

Given that:

a)

1$ = Can $1.12

It takes a value of 1 U.S dollar to have 1.12 Canadian dollars. This signifies that the U.S dollar is worth more than Canadian dollars.

b)

Assuming that the absolute Purchasing Power Parity PPP holds,

Since 1$ = Can $1.12, the cost in the United States of an Elkhead beer, if the price in Canada is Can$2.85 can be determined to be:

= $\dfrac{2.85}{1.12}$

= $2.545

c)

Yes, the U.S. dollar is selling at a premium relative to the Canadian dollar.

This is because we are being told that the spot exchange rate for the Canadian dollar is Can $1.12 & in six (6) months time the forward rate will be Can $1.14.

d)

The U.S dollar is expected to appreciate in value because it is trading at a premium in the forward market.

e)

Canada has higher interest rates. This determined by using the formula:

= $\dfrac{(\dfrac{Fwd}{Spot }-1)}{n}$

where; n= numbers of years = 6 month/12 month = 0.5 year

Then;

$=\dfrac{(\dfrac{1.14}{1.12 }-1)}{0.5}$

$= \dfrac{(1.0178-1)}{0.5}$

$= \dfrac{(0.0178)}{0.5}$

= 0.0356

= 3.56%

6 0

3 years ago

The closing is conducted by the sellers agent

torisob [31]

Answer:

False

Explanation:

As we know that the closing would be conducted by the closing agent not with the seller agent. The closing agent could be the worker or the employer etc

Therefore the given statement is false

Hence, it is not a true statement

So the same is to be relevant

6 0

3 years ago

When compliance, clarification, culture, and connection are all effectively addressed with a strategic system in place, the orga

mario62 [17]

When all four elements of clarification, culture, compliance and connection are effectively addressed through a strategic onboarding system, the organization will be considered successful onboarding.

<h3>What is the successful onboarding?</h3>

A successful onboarding program is most expected to include clarification, compliance, culture, and connection and follow-ups, relying on the size and needs of any company. This is also called as the 4 C's of the onboarding.

Therefore, It all start out in the present moment, a new employee accepts the position.

Learn more about the successful onboarding, refer to:

brainly.com/question/10370903

#SPJ1

6 0

2 years ago