Answer:
Times interest earned (TIE) = 7.4 times
Explanation:
The times interest earned (TIE) ratio is a measure used to analyze the company's ability to meet its debt obligations on the basis of its current income level. The TIE ratio is calculated as follows,
Times Interest Earned (TIE) = EBIT / Total Interest expense
Where,
- EBIT is the earnings of the company before interest and tax
To calculate TIE, we first need to determine the EBIT. EBIT can be calculated by backward working. Thus, EBIT is:
EBIT = Net income + tax + interest expense
EBIT = 240000 + 80000 + 50000
EBIT = $370000
Times interest earned (TIE) = 370000 / 50000
Times interest earned (TIE) = 7.4 times
A. credit transaction
Your bank would pay the bill then either charge you for using their money or remove it from your "checking account" depends on the way you have it set up
Answer:$1,800
Explanation:
The first step is to calculate the amount of purchase price allocated to the stock and to the warrants. This allocation is made on the basis of the ratios of the relative fair market values of the stock and warrants over the total fair market value of stock and warrants. The combined fair market value is $60 ($50 stock + $10 warrants). The allocation is Warrants:$10/$60 × $108,000 = $18,000 Stock: $50/$60 × $108,000 = $90,000 The final step is to compute the gain or loss on the sale of warrants by comparing the purchase price allocated to the warrants with the selling price of the warrants. The selling price was $19,800 and the allocation of purchase price was $18,000; therefore, the gain on the sale of warrants was $1,800
Answer:
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- <u><em>Option C. $105,608.11</em></u>
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Explanation:
Basis:
- Interest compounded monthly
- rate = 0.021/12 = 0.00175
1. Year 1:
All the figures in dollars.
- Initial balance: 0
- Initial balance + interest = 0
- Deposit at the end of the year: 23,500
- Final balance: 23,500
2. Year 2:
All the figures in dollars.
- Initial balance: 23,500
- Initial balance + interest: 23,500 (1 + 0.00175)¹² = 23,998.28
- Deposit at the end of the year: 24,500
- Final balance: 24,500 + 23,998.28 = 48,498.28
3. Year 3:
All the figures in dollars.
- Initial balance: 48,498.28
- Initial balance + interest: 48,498.28(1 + 0.00175)¹² = 49,526.60
- Deposit at the end of the year: 26,500
- Final balance: 26,500 + 49,526.60 = 76,026.60
4. Year 4:
All the figures in dollars.
- Initial balance: 76,026.60
- Initial balance + interest: 76,026.60(1 + 0.00175)¹² = 77,638.62
- Deposit at the end of the year: 28,000
- Final balance: 28,000 + 77,638.62 = 105,638.62
Assuming differences in rounding intermediate values, the answer is the option C.
Answer:
commodity value, representative value, and also fiat value.
