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GenaCL600 [577]
1 year ago
9

A company has the following ratios:

Business
1 answer:
Illusion [34]1 year ago
8 0

Answer:

The company has current ratio almost half than the industry average. This is an indication that the company has lesser current assets than industry average. The ability of the company to meet its short term obligations is not suitable as the other companies in the industry are maintaining double current ratio. The ratio should never go below 1 as if it does the company may face its operational financing and working capital management issues.

The debt to equity ratio is significantly higher than the other companies of the same industry. The industry average is 4 whereas the company has ratio 20. This is significantly higher which indicates that there is heavy burden of debt on the company.  High debt/ equity ratio indicates high risks. Investors avoid investing in such companies which have high debt/ equity ratio.

Explanation:

The company can go for equity financing as it will also help reduce its debt / equity ratio. The company will become less riskier and financing will be divided in debt and equity. The debt burden on assets will be reduced. There can be reduction in certain debt covenants. The company can use equity financing to fund its operations as well as purchase of non current assets to increase production and ultimately profitability of the company could rise.

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Answer and Explanation:

$102100 is the foreign earned income exclusion limit for 2017 , therefore Helen who is a U.S. citizen can exclude $102100 from gross income in the U.S.

7 0
1 year ago
Within the context of Jennifer Aaker's analysis, identify the brand personality that can be associated with a new product whose
Vilka [71]

Answer:

The correct answer is letter "C": competence.

Explanation:

American writer, educator, and psychologist Jennifer Aaker (born in 1967) is the author of the Brand Dimensions model in which she describes five (5) dimensions companies used for the marketing of their products that are related to individuals' personalities. Those personalities are:

  • Sincerity:<em> characterized by honesty and cheer. </em>
  • Excitement:<em> characterized by dare, spirit, and imagination. </em>
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5 0
2 years ago
The slope of the _________________ is determined by the relative price of the two goods, which is calculated by taking the price
jenyasd209 [6]

Answer:

budget constraint

Explanation:

The slope of the budget constraint is determined by the relative price of the two goods, which is calculated by taking the price of one good and dividing it by the price of the other good. Intuitively, the slope of the budget constraint represents how many of the goods on the y-axis the consumer must give up in order to be able to afford one more of the goods on the x-axis. the concept of budget line or what is also called budget constraint is essential for understanding the theory of consumer’s equilibrium.

A higher indifference curve shows a higher level of satisfaction than a lower one. Therefore, a consumer in his attempt to maximize his satisfaction will try to reach the highest possible indifference curve . But in his pursuit of buying more and more goods and thus obtaining more and more satisfaction he has to work under two constraints: first, he has to pay the prices for the goods and, secondly, he has a limited money income with which to purchase the goods. Thus, how far he would go in for his purchases depends upon the prices of the goods and the money income which he has to spend on the goods.

3 0
1 year ago
What do firms stand to gain by increasing their market power
Ivahew [28]

Answer:

Increase in profit.

8 0
1 year ago
Read 2 more answers
Russia and Qatar made the first serious moves in October 2008 toward forming an OPEC-style cartel for natural gas. The two strat
swat32

Answer:

The outcome of this game is that both countries will cheat

Explanation:

Solution

Recall that

For Russia:

If Qatar cheats or found cheating is = zero cheat

If Qatar co-operates = 140 million (co-operates or comply)

For Qatar:

If Russia cheats or found cheating is = it is considered as a  zero cheat

If Russia cooperates = 140 million (co-operates or comply)

So,

The outcome of equilibrium = (0,0)

Therefore the outcome of this game is that both countries will cheat

Note: Kindly find an attached copy of part of the solution to the question given.

7 0
1 year ago
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