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xenn [34]
2 years ago
11

Ajax Corp's sales last year were $400,000, its operating costs were $362,500, and its interest charges were $12,500. What was th

e firm's times-interest-earned (TIE) ratio
Business
1 answer:
olga nikolaevna [1]2 years ago
6 0

Answer:

3 times

Explanation:

Times Interest earned is a financial ratio that shows how many times an entity's net income or earnings before interest and taxes can be used to settle the company's interest expense.

It is given as the ratio of earnings before interest and tax to interest expense.

Earnings before interest and taxes is the difference of sales and operating costs.

= $400,000 - $362,500

= $37,500

Hence, the firm's times-interest-earned (TIE) ratio

= $37,500/$12,500

= 3

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An investment offers a total return of 11 percent over the coming year. Alex Hamilton thinks the total real return on this inves
Ahat [919]

Answer:

2.87%.

Explanation:

The total return, also refer to as Nominal return or Money return, is based on the nominal interest rate. For example, let's say that you deposited $100 into a bank account and the bank offers you an annual return of 11%. This 11% is the stated interest rate, it is known as nominal interest rate, and it is rate before taking into account the effect of inflation. When we deduct the effect of inflation from nominal rate, it gives us the real rate. Real rate reflects the Purchasing Power. The Fisher equation will be used to determine the expected inflation rate. The Fisher equation is as follows:

                                            (1 + i ) = (1 + r) * (1 + h)

where

i = Nominal (Money) rate

r = Real rate

h = Inflation rate

Simply adjust the equation to calculate the inflation rate;

⇒ h = [(1 + i) / (1 + r)] - 1

OR h = [(1 + .11) / (1 + .079)] - 1 = 2.87%.

8 0
2 years ago
Use the information presented in Southwestern Mutual Bank's balance sheet to answer the following questions.
nikitadnepr [17]

Answer:

a. Its intended goal is to protect the interests of those who hold equity in the bank

Explanation:

Base on the scenario been described in the question, Its intended goal is to protect the interests of those who hold equity in the bank

Capital requirements are designed to ensure that banks will have sufficient capital to repay the depositors and debtors. A bank's "capital" is the difference between the total value of the bank's assets and its total deposits plus debt. That is, the bank's capital is the money that would be left over if the bank were able to liquidate all of its assets to pay off all of its depositors and debtors.

8 0
2 years ago
Within her company, Nadine utilizes a management style that varies according to the individual and environmental situation, with
jeka57 [31]

Answer:

b) contemporary

Explanation:

Contemporary management perspective or leadership includes some characteristics as:

"A managerial leadership style that entail inviting input from every individual before making any major decision.

Participative leadership style tends to incorporate a democratic perspective in modern management, which has initially been centralize

This leadership style is based on the ability of a leader to match to the prevailing circumstances.

Major decisions are dependent (contingent) upon the inherent internal and external situation of a company or society."

Reference: GumEssays. “Contemporary Leadership.” Premium Level Assignment Help on GumEssays.com, 2019,

8 0
2 years ago
Standlar Company makes and sells wireless speakers. The price of the standard model is $360 and its variable expenses are $210.
Vladimir79 [104]

Total contribution margin = $3,000, standard models sold at break even=800, deluxe models sold at break even=400, superior models sold at break even=100

<u>Explanation:</u>

1.Using sales mix stated in the fact from Figure to form a package what is the total contribution margin?

total contribution margin  =($150 multiply 8) plus ($200 multiply 4) plus ($1,000 multiply 1)  = $3,000

2.Refer to Figure, What is the number of standard models sold at break even.

break even units  =Fixed cost divide contribution margin per package

= $300,000 divide $3000  =100 package  standard models sold at break even=100 package multiply 8 = 800

2.Refer to Figure, What is the number of deluxe models sold at break even.

break even units

=Fixed cost divide contribution margin per package  = $300,000 divide $3000

=100 package  deluxe models sold at break even = 100 package multiply 4

6 0
2 years ago
The following information relates to Mapfes Manufacturing Corporation for next quarter: January February March Expected sales (i
prohojiy [21]

Answer:

Number of units which company plan to produce in February is 352000

Explanation:

We have given expected sales in January, February and march is 440000, 390000 and 380000 units respectively  

And desired needing finished goods in inventory  in January, February and march is 39000, 38000 and 40000 units respectively  

We have to find the how many units company plans to producing for month February

Number of units which company plan to produce in February = 390000 - 38000 = 352000  

6 0
2 years ago
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