All categories

2 years ago

Queen, inc., has a total debt ratio of .32.

Business

1 answer:

gulaghasi [49]2 years ago

4 0

(A) Debt ratio = 0.32

Debt/(debt + equity)= 0.32

Debt = 0.32 *Debt + 0.32 *Equity

0.68* Debt = 0.32* Equity

Debt = 0.32*Equity/0.68 = 0.32/0.68 * Equity

Debt /equity ratio = (0.32/068*Equity)/Equity

Debt/Equity ratio = 0.32/0.68 = 0.47

Debt-equity ratio = 0.47 (Rounded to 2 decimals)

(B) Equity multiplier = 1 + debt -equity = 1+0.47 = 1.47

Equity multiplier = 1.47 (Rounded to 2 decimals)

You might be interested in

Which of the following is not part of the flow of events in variance analysis: Multiple Choice

IrinaK [193]

Answer: a.Working to ensure that all variances are favorable.

Explanation:

Variance Analysis is an analysis of the difference between planned and actual numbers. For example of $599 was budgeted for bills but only $500 was paid, $99 would be the Variance.

Summing Variances up gives a picture of performance for a particular period of time in relation to if one has OVER -PERFORMED or UNDER-PERFORMED

The following are steps in Effective Variance Analysis Management

1. Identifying questions and their explanations

2. Preparing standard cost performance reports

3. Taking corrective and strategic actions

4. Computing and analyzing variances.

Option A is not included therefore it is the correct option.

If you require any further clarification do react or comment.

3 0

2 years ago

10 percent partner in a partnership that incurred a $4 million business loss this year. Jahlil has no other business activities.

sashaice [31]

Answer:

$250,000 and $500,000

Explanation:

According to the tax laws there is annual limit on Loss deductions relating the amount of business loss that can be deducted in a year.

The law states that single or individual tax payers can deduct nothing more than $250,000 while married taxpayers who are filing jointly can deduct up to $500,000 per year of their business losses.

Therefore, if Jahlil is single the amount of partnership loss he can deduct is $250,000 but if he is married filing jointly, he can deduct $500,000

6 0

2 years ago

The municipality of Smallville has arranged to borrow $30 million in order to implement several public projects (flood control

sergeinik [125]

Answer:

The correct response is "6.71 years".

Explanation:

The given values are:

Loan amount

= $30 Million

Loan payment per year

= $5 Million

Interest rate

R = 3%

Let,

The take number of years will be "n".

⇒ $30=5\times (\frac{\frac{1-1}{(1+3 \ percent)^n}}{3 \ percent} )$

⇒ $30\times \frac{3 \ percent}{5}=(\frac{1-1}{1.03^n} )$

⇒ $.18=\frac{1-1}{1.03^n}$

⇒ $\frac{1}{1.03^n} =1-.18$

⇒ $1.03^n=\frac{1}{.82}=1.2195$

On taking log both sides, we get

⇒ $n=\frac{log (1.2195)}{log(1.03)}$

⇒ $n=6.71 \ years$

8 0

2 years ago

The HR department at Trevor Communications oversees the recruitment and training of employees at the firm.As the firm grows and

Katarina [22]

Answer:

C) A learning management system

Explanation:

Analyzing the above scenario, it is clear that the learning management system would be very useful to the HR department at Trevor Communications.

This system can be defined as a learning process that takes place in a virtual way, in an environment where each individual can access learning content in an interactive and dynamic way, by accessing a tool that contains the content and information necessary for specific learning.

This system confers several advantages to the organization, such as the elimination of personnel costs, greater ease of monitoring and follow-up, greater availability, ease of implementation and evaluation.

7 0

2 years ago

The following information is from the 20X1 annual report of Weber Corporation, a company that supplies manufactured parts to the

DENIUS [597]

Answer:

ROA for 20X1= 10%

Profit margin for 20X1= 5%

Assets turnover= 2

ROA for the coming year= 11.25%

Explanation:

Weber corporation return on assets for 20X1 can be calculated as follows

ROA= Net income/Average total assets × 100

= 2,450,000/24,500,000 × 100

= 0.1 × 100

= 10%

The profit margin can be calculated as follows

= Net income/sales × 100

= 2,450,000/49,000,000 × 100

= 0.05 × 100

= 5%

The assets turnover ratio can be calculated as follows

= Sales/Average Total assets

= 49,000,000/24,500,000

= 2

The company ROA if when the turnover rate for next year is2.25 and the profit margin remain unchanged can be calculated as follows

= profit margin × assets turnover ratio

= 5% × 2.25

= 11.25%

8 0

2 years ago