THREE government regulations that guides the establishment and operation of a business.
1 answer:
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Answer:
D. 35.5
Explanation:
Times Interest Earned
Where EBIT = Earning before interest and taxes
In your assingment we have the Income before the income taxes, whgich means it is including the interest expense, we need to remove it:
EBT + Interest expense = EBIT
1,023,911 + 29,670 =1,053,581
Now we calculate the TIE
1,053,581 / 29,670 = 35.50997641 = 35.51 = 35.5
The company earns their interest 35.5 times.
The numerator of the return on common stockholders' equity is net income minus preferred dividends.
Option d
<u>Explanation:</u>
Return on common stockholders' equity which is also named as return on equity (ROE) ratio evaluates the accomplishment of a company in resulting income for the benefit of common stakeholders.
<em>Use of return on equity:</em>
- Isolates common equity returns
- Can be used to evaluate dividends
- Evaluates the use of capital by the management
It is calculated by income available for stockholders divided by the total number of common stock and is expressed or represented in percentage. Income available for common stockholders can be arrived by reducing preference dividends from Net income.
That is,
Hence, net income minus preferred dividends is the right answer.