4. Debt (or leverage) management ratios
Companies have the opportunity to use varying amounts of different sources of financing to acquire their assets, including internal and external sources, and debt (borrowed) and equity funds.
1. Which of the following is considered a financially leveraged firm?
a. A company that uses debt to finance some of its assets
b. A company that uses only equity to finance its assets
2. Which of the following is true about the leveraging effect?
a. Interest on debt is a tax deductible expense, which means that it can reduce a firm’s taxable income and tax obligation.
b. Interest on debt can be deducted from pre-tax income, resulting in a greater taxable income and a smaller available operating income.
Red Snail Satellite Company has a total asset turnover ratio of 3.50x, net annual sales of $25 million, and operating expenses of $11.25 million (including depreciation and amortization). On its current balance sheet and income statement, respectively, it reported total debt of $2.5 million, on which it pays 7% interest on its outstanding debt.
To analyze a company’s financial leverage situation, you need to measure the firm’s debt management ratios. Based on the preceding information, what are the values for Red Snail Satellite’s debt management ratios? (Note: Do not round intermediate calculations.)
RatioValueDebt ratioTimes-interest-earned ratio
Red Snail Satellite Company raises around from creditors for each dollar of equity.
Influenced by a firm’s ability to make interest payments and pay back its debt, if all else is equal, creditors would prefer to give loans to companies with ____ (low or high) debt ratios.
In: Finance
Perspectives such as behaviorism and social cognitive theory show us how the consequence (reinforcement or punishment) of a particular behavior affects the extent to which the behavior is likely to appear again. Attribution theory has cast a new light on this notion, maintaining that the consequences of behavior will affect each person’s learning and future behavior differently depending on how the individual interprets those consequences. Within the context of attribution theory:
a. Explain what motivation theorists mean when they talk about attributions.
b. Explain how learners’ responses to failure are likely to be different when they attribute that failure to a controllable cause or to an uncontrollable one. Give a concrete example to illustrate your explanation.
c. Describe three specific strategies you might use to foster more productive attributions in others. In each case, use attribution theory to explain why you think the strategy should be effective.
In: Psychology
c. Give the genotypes and their percentages resulting from a cross between a homozygous independent tryptophan parent and a heterozygous tryptophan independent parent:
In: Biology
1.What is an example of “flourishing under fire “ and resilience from you own experience? (Can be yourself or someone you know.) Describe in some detail.
2. What might explain (internal or external causes) the basis of this resilience? What helped you or the person you describe make it through the experience and what did you learn from this experience?
In: Psychology
Think about a study you would like to explore that concerns organizational or social issues and could be analyzed with a one-sample or independent samples t test. Answer the following: Explain the issue you would like to study Explain which type of t test would fit your design. List the null hypothesis. List the research or alternative hypothesis. Explain what you expect to find if you ran the study. Explain what decision you would make about the hypothesis. Explain what a 95 percent or 99 percent confidence interval of the mean would tell us for this study.
In: Statistics and Probability
Essay Question: Analyze existing publications on addressing natural disaster emergencies with information technology.
The paper main body needs to be not longer than 5.5 pages single spaced text (without the title page and the abstract and the list of references, and not shorter than 4 pages). It needs to present a synthesized analysis of and describing the importance of the topic), the topic as a Word report. The research paper should show your analysis of findings from published sources (including 70% refereed papers and the rest can be from other online publications) , that are related to the respective problem The research paper needs to have this structure: a title page, showing the title, the author, the course name and the name of the instructor, year; a 10-15 line abstract (which is prepared at the end ) 1. Introduction (it should include sentences stating the purpose of the paper and describing the importance of the topic), 2. Overview of past research on the topic (you need to modify the section title according to your topic, place here the review of the literature that you have conducted, indicating also some evaluation of the most important aspects of it, you can use subsection titles for better structure of the paper), 3. Description of 1-2 case studies on the topic, as described in the literature (again adapt the section title to what you have found) 4. Conclusion 5. References. 10 Note that your formulation of the section titles above can be within certain variations depending on your literature findings but the suggested approximate structure needs to be adhered to and each section in the paper must have a proper title. The author needs to identify supporting materials- at least 5-6 relevant sources, max 10 (of those at least 70% have to be refereed) using our library databases like ABIINform (use the Advanced search link and indicate that you are looking for refereed and peer reviewed sources) and EBSCO Host Academic Search Premier or other database that contain relevant sources for the topic or also Google Scholar (in Google type Google Scholar, this will take you to the site for it, then choose on the left corner the menu, select Advanced Google Scholar and you can combine more than 1 criteria in your search) or use also the ISCRAM Proceedings
Hello, I have to write a 5 page paper on the information provided below. If you could get me started and help with a guide and provide a few sources i could use to help me write that would be greatly appreciated. Basically looking for an outline and introduction paragraph to get started. Thank you!
In: Nursing
“What, in your opinion, is the importance of performance management system and how would the knowledge and skills you have acquired about the performance management system in this course help you in your career as an effective manager? Use your personal examples to illustrate your reflections.” About 1000words
In: Operations Management
Safaricom service provider has assigned you a task in their software section to design an application that can be used by wholesalers to buy their products. Your duty is to implement the data structure which can be used to store the inventory of the warehouse containing the products. The data structure should be able to add a product with an associated code indicating its likelihood to spoil, remove a product that is most likely to spoil, and return the overall number of products in the inventory.
i. Describe the data structure you would use and give reasons.
ii. With reference to algorithms, explain the terms time efficiency and space efficiency.
iii. Describe a non-linear data structure. Give examples and operations in which you might perform on such a structure.
In: Computer Science
In: Psychology
Use this information to answer the questions below:
A regression has been run for you using the SAS and the following regression equation was obtained:
Y = 30-2X + U.
The following data are given to you for your use in analyzing the assumptions about the OLS model.
|
Obs |
Y |
X |
(X-) |
(Y-) |
(X-)(Y-) |
(X-)2 |
(Y-)2 |
U |
U2 |
u(-1) |
X2 |
|
1 |
10 |
4 |
|||||||||
|
2 |
50 |
3 |
|||||||||
|
3 |
10 |
2 |
|||||||||
|
4 |
30 |
1 |
|||||||||
1 Give the problem which is caused when serial correlation is present.
(a) If du = 1.40 and dl = .630 is there a problem with serial correlation?
(b) If there is a problem explain how you would fix the problem using first differences. What are the new regression coefficients?
2 Is there heteroscedasticity exhibited in this model when the appropriate F value is 5.00?
(a) Explain the problem of heteroscedasticity.
(b) How would you correct this problem?
3 What is multi-collinearity and why should you worry about it.
(a) Why is multi-collinearity more of a problem than serial correlation?
(b) How would you test for multi-collinearity and what might be a solution to this problem? (note: you can not use the data above to answer these questions)
In: Economics