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Vedmedyk [2.9K]
2 years ago
12

When dividing its total debt by its total equity, what’s a company try to measure?

Business
1 answer:
sergejj [24]2 years ago
3 0

It should be noted that when a company divides its total debt by its total equity, it's measuring its A. leverage.

<h3>What is a leverage?</h3>

It should be noted that the debt to equity ratio simply compares liability to the equity.

When dividing its total debt by its total equity, the company try to measure its leverage. This is important in order to know the financial standing of the firm.

Learn more about equity on:

brainly.com/question/1957305

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Imagine you have some workers and some handheld computers that you can use to take inventory at a warehouse. There are diminishi
nexus9112 [7]

Answer:

Explanation:

For computing the  cost of inventorying, we have to apply the formula which is shown below:

= Total costs ÷ Number of items

1. Cost of inventorying = Total costs ÷ Number of items

                                     = $125 ÷ 100 items

                                     = $1.25

Total cost = $100 + $25 = $125

2. Cost of inventorying = Total costs ÷ Number of items

                                     = $150 ÷ 150 items

                                     = $1

Total cost = $100 + $25 + $25 = $150

3. Cost of inventorying = Total costs ÷ Number of items

                                     = $175 ÷ 160 items

                                     = $1.10

Total cost = $100 + $25 + $25 + $25 = $175

$25 is the each worker pay

To minimize the cost we required two workers as the cost of inventorying is lesser than other two.

3 0
3 years ago
Refer to the table above. Which of the following scenarios is consistent with this statement? "The rate of inflation was 23.75 p
Firlakuza [10]

Answer:

C. The price of a hamburger was $3.80 rather than $5.50 in 2010, with other prices in the table remaining fixed.

Explanation:

The given table shows the inflation rates and price movement over the years. The hamburger had inflation effect and its price increased by almost $1. The price change will create burden on the consumer and they will have to pay for inflation differential.

8 0
3 years ago
Cash-basis vs. accrual-basis accounting?
ki77a [65]
The cash<span> method accounts for revenue only when the money is received and for expenses only when the money is paid out. On the other hand, the </span>accrual<span> method accounts for revenue when it is earned and expenses goods and services when they are incurred. ... </span>Accrual<span> accounting is the most common method used by businesses.</span>
4 0
4 years ago
Eton Corporation purchased land in 1998 for $190,000. In 2018, it purchased a nearly identical parcel of land for $430,000. In i
Sloan [31]

Available options are:

A) Cost principle.

B) Principle of the business entity.

C) Objectivity principle.

D) Going-concern assumption

Answer:

Option A Cost Principle          

Explanation:

The cost principle says that the asset must be recorded at the amount that it costs in past to company. However IAS 16 Property, Plant & Equipment says that the land must not be depreciated because the life of the land is unlimited. Furthermore, revaluing asset is against the cost principle because it increases its value above the past cost of the asset. Hence the correct option here is cost principle.

4 0
3 years ago
Kilgore Natural Gas has a $1,000 par value bond outstanding that pays 10 percent annual interest. The current yield to maturity
zubka84 [21]

Answer:

a) 40 yrs Price=$910.49 b) 17 yrs Price=$924.51 c) 8 yrs Price=$948.54

Explanation:

Hi, well, what we need to do is to use the following data and formula in order to find the ´price of each bond, just by changing the maturity time for each , option (40 years, 17 years, and 8 years). Let's illustrate with the first price, when its maturity is 40 years.

Price=\frac{Coupon((1+YTM)^{n-1}-1 )}{YTM(1+YTM)^{n-1} } +\frac{(Face Value+Coupon)}{(1+YTM)^{n} }

Price=\frac{100((1+0.11)^{39}-1 )}{0.11(1+0.11)^{39} } +\frac{(1000+100)}{(1+0.11)^{40} }=910.49

That was a) Price=$910.49

Price=\frac{100((1+0.11)^{16}-1 )}{0.11(1+0.11)^{16} } +\frac{(1000+100)}{(1+0.11)^{17} }=924.51

That was b) Price=$924.51

Price=\frac{100((1+0.11)^{7}-1 )}{0.11(1+0.11)^{7} } +\frac{(1000+100)}{(1+0.11)^{8} }=948.54

Finally, that was c) Price=$948.54

Best of luck.

8 0
3 years ago
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