answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
timurjin [86]
1 year ago
14

A potential bondholder is considering four companies for investment. Which company has the lowest likelihood of defaulting on th

eir interest payments?
Company 3 has a times interest earned ratio of 9.1.
Company 4 has a times interest earned ratio of 14.3. Company 2 has a times interest earned ratio of 5.2.
Company 1 has a times interest earned ratio of 12.7.
Business
1 answer:
Ann [662]1 year ago
4 0

Answer:

Company 4 has a times interest earned ratio of 14.3.

Explanation:

The times interest earned (TIE) ratio is a measure of a company's ability its ability to pay its debts based on its current income. Is an indication of a company's relative freedom from the constraints of debt

A higher TIE number shows that a company has enough cash after paying its obligations to continue to invest in the business.

In this particular case, it is company 4, because its TIE is the highest

You might be interested in
The Palace Hotel Group purchased Orange Roof Hotels for an estimated value of $120 billion. All the hotels previously owned by O
sveticcg [70]

Answer:

This scenario best illustrates an acquisition.

Explanation:

Acquisition refers to the situation where a company gains control of the other company by purchasing all or most of its shares. Acquisitions are common in small and medium-sized firms and may happen with or without the consent of the target company.

In the given example, Orange roof hotels are the target company that is being purchased by the Palace Hotel group which will now control the assets of the Orange roof hotels and take business decisions.

7 0
2 years ago
Read 2 more answers
Pablo Company has budgeted production for next year as follows: Quarter First Second Third Fourth Production in units 60,000 80,
KiRa [710]

Answer:

Budgeted purchases for second quarter is 165000 pounds

Explanation:

The per unit requirement of material A is 2 pounds.

We first need to calculate the closing inventory of Material A at the end of first quarter and at the end of second quarter.

<u />

<u>End of first quarter</u>

The closing inventory for First quarter should be enough to meet 25% production requirement for next quarter. 25% production requirement for second quarter is 40000 pounds.

Production requirement - Second quarter = 80000 * 2 = 160000

25% of 160000 = 40000 pounds

<u />

<u>End of second quarter</u>

The closing inventory for First quarter should be enough to meet 25% production requirement for next quarter. 25% production requirement for second quarter is 45000 pounds.

Production requirement - Second quarter = 90000 * 2 = 180000

25% of 180000 = 45000 pounds

Budgeted Purchase -Second quarter = Closing Inventory in pounds + production in pounds - Opening Inventory in pounds

Purchase requirement - First quarter = 45000 + 160000 - 40000 = 165000 pounds

5 0
2 years ago
Read 2 more answers
On September 30, 2021, the San Fillipo Corporation issued 8% stated rate bonds with a face amount of $180 million. The bonds mat
pychu [463]

Answer:

Bond Price = $149.1136446 million rounded off to $149.11

Explanation:

To calculate the price of the bond today, we will use the formula for the price of the bond. We assume that the interest rate provided is stated in annual terms. As the bond is a semi annual bond, the coupon payment, number of periods and semi annual YTM will be,

Coupon Payment (C) = 180 million * 0.08 * 6/12 = 7.2 million

Total periods (n) = 20 * 2 = 40

r or YTM = 0.1 * 6/12 = 0.05 or 5%

The formula to calculate the price of the bonds today is attached.

Bond Price = 7.2 * [( 1 - (1+0.05)^-40) / 0.05]  +  180 / (1+0.05)^40

Bond Price = $149.1136446 million rounded off to $149.11

3 0
1 year ago
A property title search firm is contemplating using online software to increase its search productivity. Currently an average of
Korolek [52]

Answer:

Current = 5.00

Company A = 6.30

Company B = 6.71

The company B would have the highest productivity in terms of revenue per dollar of input, that is 6.71.

Explanation:

Current:

Average time = 40 minutes

Cost = 40 minutes x $2 = $80

Productivity (Revenue per $ input) = $400 / $80 = 5.00

Company A:

Average time = 40 - 10 = 30 minutes

Cost = (30 minutes x $2) + $3.50 = $60 + $3.50 = $63.50

Productivity (Revenue per $ input) = $400 / $63.50 = 6.30

Company B:

Average time = 40 - 12 = 28 minutes

Cost = (28 minutes x $2) + $3.60 = $56 + $3.60 = $59.60

Productivity (Revenue per $ input) = $400 / $59.60 = 6.71

Current = 5.00

Company A = 6.30

Company B = 6.71

The company B would have the highest productivity in terms of revenue per dollar of input, that is 6.71.

Hope this helps!

7 0
1 year ago
Which of the following technologies permits service calls to U.S. companies to be answered in India just as easily and inexpensi
LenKa [72]

The options for this question are: A. Software as a web service B. Cellular networks C. TQM D. Internet telephony E. The World Wide Web

Answer:

The correct answer is D. Internet telephony.

Explanation:

Internet telephony (also called IP telephone or Voice over IP or VoIP) designates telephone activity through a computer network in which data is transmitted according to the IP standard. IP means "Internet protocol" and is a set of rules according to which data must be prepared for transmission on the Internet. IP telephony uses the same transmission channels as normal data transmission on the Internet.

7 0
1 year ago
Other questions:
  • You run a school in Florida. Fixed monthly cost is $5,371.00 for rent and utilities, $5,502.00 is spent in salaries and $1,071.0
    6·2 answers
  • Closing entries with net income Automation Services Co. offers its services to companies desiring to use technology to improve t
    12·1 answer
  • Louise Bragan has a sideline business of carving candlestick holders. She began by hand carving them with simple tools. On avera
    6·1 answer
  • Which of the following is a control problem related to segregation of duties? a. Bob order office supplies and deposits the comp
    9·1 answer
  • Rashid wants to raise awareness of his brand and build campaigns focused on branded terms. He does not have much time to devote
    7·1 answer
  • Corny and Sweet grows and sells sweet corn at its roadside produce stand. The selling price per dozen is​ $4.00, variable costs
    12·1 answer
  • A magazine ad designed for Target's new campaign shows a well-dressed shopper pushing her loaded Target cart to her Jaguar, show
    7·1 answer
  • Cortez Company sells chairs that are used at computer stations. Its beginning inventory of chairs was 100 units at $60 per unit.
    11·1 answer
  • Which of the following statement(s) is(are) true regarding the variance of a portfolio of two risky securities? I) The higher th
    6·1 answer
  • As the controller of Chardon​ Consulting, you have hired a new​ employee, whom you must train. She objects to making an adjustin
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!