Catharine, Inc. is considering issuing additional long-term debt to finance an expansion. The company currently has $20 million in 5% debt outstanding. Its earnings after-tax (EAT) are $3.0 million, and its marginal and average tax rate is 40 percent. The company is required by the debt holders to maintain its times interest earned ratio at 3.0 or greater. How much additional 10 percent debt can Catharine, Inc issue now and maintain its times interest earned ratio at 3.0
Answers
Answer:
$10 million
Explanation:
Calculation for How much additional 10 percent debt can Catharine, Inc issue
First step is to find the EBT
EBT = $3.0 / (1 - 0.40)
EBT= $5.0
Second step is to find the EBIT
EBIT = $5.0 + $1.0
EBIT= $6.0
Third step is to find the Interest permitted using this formula
Interest permitted = EBIT / Times interest earned
Let plug in the formula
Interest permitted = $6.0 / 3.0
Interest permitted = $2.0
Fourth step is to find the Additional interest amount
Additional interest = $2.0 - $1.0
Additional interest = $1.0
Last step is to compute the Additional debt amount
Additional debt = $1.0 / 0.1
Additional debt= $10 million
Therefore the Additional debt will be $10 million
Related Questions
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Answers
Answer:
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Explanation:
Bullwinkle Co. acquired an adjacent vacant lot with the hope of selling it in the future at a gain. The lot is not intended to be used in Bullwinkle business operations. Where should such real estate be listed on the balance sheet?
Answers
Two friends and neighbours arrange to go into business together and then become bitter
rivals: This is the story of Bob Bell and Michael Sharpe, who once lived just four houses
apart on Oxford Street in Guelph, Ontario.
Bell and Sharpe thought they had a good idea for a new business venture—a bicycle
trailer—but the good idea turned into a long, sizzling struggle. Bell invented the bicycle
trailer. Shortly after coming up with the idea, he began to design and build the bicycle
trailer in his garage. Once he shared his idea with Sharpe, both thought they could form a
successful partnership by drawing upon each other’s expertise. Bell, an engineer by trade,
would take on research and development; Sharpe, a former computer software sales
manager and career manager, would focus on marketing. Sharpe put together the business
plan—but before it was finalized, the deal fell apart.
The major point of conflict between Bell and Sharpe was royalties. Bell wanted to license
the bicycle trailer design to Sharpe and collect a fee for each bicycle trailer produced.
Sharpe wanted Bell to invest more in the venture and share the financial risk. However,
Bell did not see any grounds for negotiation. Bell considered the bicycle trailer his idea. He
had designed it, he had bought the materials to build it, and he had put in the time to
develop the final product. When both parties hired lawyers and Bell demanded intellectual
property rights, the great Canadian buggy war began.
Bell planned a slow, steady campaign, working from the basement of his home with one
employee. He started selling his cargo trailer, the WIKE, at the local farmers’ market. His
goal was to sell 20 trailers the first year and 500 in the coming year. Bell continued his “go
slow, get it right” campaign, selling locally and fine-tuning his trailer to carry children.
However, he eventually decided that making every bicycle trailer himself was not a good
strategy. By 2002, Bob Bell just wanted his life back.
Meanwhile, Sharpe had his own grand plan. He established his new company, Greenways,
mortgaged his home, took a bank loan, rented a factory, and hired five employees. Sharpe began mass production of his version of the trailer, the Wonder Wagon, which
accommodated small children. He projected sales of 2500 nationwide for the coming year.
By the spring of 1994, Sharpe was selling to big specialty retailers and Toronto’s largest
sporting goods store. Later, bike shops across the country and two national retailers were
selling his wagon. He was even a corporate sponsor in Vancouver’s Ride for Life.
So how did this end? Bell won the patent infringement case against Sharpe. Bell’s company
has expanded to six different versions of the bicycle trailer. It also has a licensed
manufacturer in China, from whom Bell collects royalties. Sharpe eventually abandoned the
whole buggy idea, and switched careers to . . . the fitness industry.
Questions
1. What were the sources of conflict between Bell and Sharpe?
2. Which of the five conflict resolution techniques does each man prefer in handling his
conflict? Is there another conflict resolution approach you would recommend? Why?
3. How would you have handled the conflict? Why?
Answers
Explanation:
1. The sources of conflict between Bell and Sharpe were primarily related to the ownership and financial aspects of their business venture. The major point of contention was the issue of royalties. Bell wanted to license his bicycle trailer design to Sharpe and collect a fee for each trailer produced, while Sharpe wanted Bell to invest more in the venture and share the financial risk.
2. Based on the information provided, it seems that Bell preferred a competitive conflict resolution approach. He wanted to assert his ownership of the bicycle trailer design and demanded intellectual property rights, leading to a patent infringement case against Sharpe.
On the other hand, Sharpe seemed to prefer a collaborative conflict resolution approach initially. He wanted Bell to invest more in the venture and share the financial risk. However, as the conflict escalated, Sharpe pursued his own independent path by establishing his own company, Greenways, and mass-producing his version of the trailer.
Given the information provided, an alternative conflict resolution approach that could have been recommended is a compromising approach. Both parties could have worked towards a mutually beneficial solution by finding a middle ground where Bell could have received some financial compensation for his invention, while Sharpe could have shared the risk and invested in the venture to a certain extent.
3. Handling the conflict would require effective communication and negotiation between Bell and Sharpe. Here is how I would have approached the conflict:
a) Facilitate open and honest communication: Encourage Bell and Sharpe to express their concerns, interests, and goals clearly. This will help them understand each other's perspectives and foster better communication.
b) Identify common goals: Find common ground where both parties can agree and work together. Emphasize their shared interest in the success of the business venture and focus on finding a win-win solution.
c) Explore a compromise: Encourage Bell and Sharpe to consider a compromise that addresses their concerns. This could involve a combination of licensing the design and sharing the financial risk. They can agree on a royalty fee for Bell while Sharpe invests in the venture to a certain extent.
d) Seek professional advice: Engage neutral third parties, such as business consultants or mediators, to provide guidance and facilitate the negotiation process. Professional advice can help them navigate complex legal and financial aspects and find a fair resolution.
e) Document agreements: Once a resolution is reached, ensure that the agreements and terms are documented in a formal contract. This will provide clarity and prevent future misunderstandings.
By adopting a collaborative and compromising approach, it would have been possible to find a resolution that satisfied both parties' interests and allowed them to work together more effectively.
The following time series data show the number of lightning strikes in a particular county for the most recent seven months.
Month 1 2 3 4 5 6 7
Value 26 15 22 14 21 25 17
Answers
The time series plot of the provided data displays the quantity of lightning strikes in a specific county over a period of seven months. Because its MSE is lower than the MSE using the most recent value, the average of all prior values offers a superior forecast.
It appears to follow a seasonal trend based on the pattern seen in the data. This is evident from the values' variation over time, which exhibits a cycle or recurring pattern.
We must series plot the MSE values to see whether strategy produces the best forecast. The MSE value of the most recent value approach is lower (42.15) than that of the average technique (84.44), indicating a more accurate forecast. Therefore, a better forecast is given by the most recent value.
As a result, the significance of the time series data show the number of lightning strikes in a particular county for the most recent seven months are the aforementioned.
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In the _____________ stage of a project you are more likely to find status reports, changes, and the creation of forecasts.
Answers
Answer:
Executing
Explanation:
The project life cycle shows the cycle from introduction to maturity or decline of the products. It shows the overall journey of the product
In order to determine the status regarding the reports, any changes made and the development of the forecast this would be shown in the stage of execution
So as per the given situation, the executing stage should be considered
During June, Birch Bay Company's Department B equivalent unit product costs computed under the FIFO method were as follows: Materials $2 Conversion $3 Transferred-in $5 Materials are introduced at the end of the process in Department B. There were 4,000 units (70 % complete as to conversion costs) in work in process at June 30. The total costs assigned to the June 30 work in process inventory should be:
Answers
At the end of June, there were 4,000 units in production that were 60% complete in terms of conversion costs. A total of $27,200 should be allocated toward the work-in-progress inventory as of June 30.
What else do you mean by that?Inventory is the term used to describe all the products, materials, goods, and merchandise that a company has on hand and plans to sell to customers for a profit. The car will be handled like an asset.
What are the three different categories of stock?There are three sorts of inventories that manufacturers deal with. These are unfinished products, work in progress, and raw materials, which are all ready to be worked on .
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For most accounting positions, the minimum educational requirement is
O A. a master's degree
B. a bachelor's degree
C. a combination of coursework and experience
D. a bachelor's degree plus some graduate coursework
Answers
Answer:
B, a bachelor's degree
just answered this question
For most accounting positions, the minimum educational requirement is a bachelor's degree. Hence, option B is correct.
What is accounting positions?Examples of typical accounting positions include auditor, budget analyst, accounts payable specialist, tax accountant, and forensic accountant. These roles can vary, as can the educational and professional requirements needed to get one of these occupations.
Although different professional accounting sources may categorize accounting occupations into different groupings, the four types outlined below represent the accounting positions that are typically found throughout the field.
These four fields of accounting include corporate, public, governmental, and forensic accounting. An entry-level accounting position that often answers to the controller in smaller companies or one of the higher level positions.
Thus, option B is correct.
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A banking institution offers different investment programs for young couples, families, and retired individuals. What type of consumer segmentation is
this?
A. psychographic segmentation
B. demographic segmentation
C. behavioral segmentation
D. geographic segmentation
Answers
Answer:
demographic!!!
Question 3 (2 points)
Which of the following is NOT a way to balance a project?
..
O At the Enterprise Level
At the Business Case Level
.
O At the Program Level
At the Project Level
Answers
Answer:
1
Explanation:
at the bisiness casel level
The best way to improve search engine ranking is with
1. Video
2. A blog
3.Having at least 500 words on the page
4.a lot of graphics per page
Answers
I believe it would be through a video (A). If you're wanting to make your website one of the highest or want to grow something, then the best way is to advertise. When you promote your website through a video, most viewers will be interested if its something they need, or its something that seems interesting.
Answer: A
A All the costs chargeable to the bu Depreciation on the building for 2014 Explanations are not required. 2 Report Garrett's Book Store's plant assets on the company's balance sheet at December 31, 2014 3. What will Garrett's income statement for the year ended December 31, 2014, report for this situation? E-33 (Learning Objective 3: Determine depreciation amounts by three methods) Royce's Pizza bughaused Honda delivery van on January 2, 2014, for $43,000. The van was expected to emain in service for four years (208,000 miles). At the end of its useful life, Royce's officials esti- mated that the van's residual value would be $3,500. The van traveled 65,000 miles the first year, 64,000 miles the second year, 42,000 miles the third year, and 37,000 miles in the fourth year. Requirements 1. Prepare a schedule of depreciation expense per year for the van under the three depreciation ⁷roduction and double-declining-balance, mund to the nearest two decimal places after each step of the calculation.) 2. Which method best tracks the wear and tear on the van? 1. Which method would Royce's prefer to use for income tax purposes? Explain in detail why Royce's prefers this method. 27-448 (
Answers
Answer:answer choices
Explanation:
Dré m Johnson profile
Answers
Answer:
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Which type of car insurance policy usually has the highest premium?
Answers
Comprehensive car insurance policy usually has the highest premium among all the other types of car insurance policies. Hence the correct answer is A.
Comprehensive car insurance is an optional coverage that provides protection against damage to your vehicle from various risks such as theft, vandalism, fire, and natural disasters. It also covers damages to your car from collisions with animals. Comprehensive car insurance provides broader coverage than liability insurance, including damage to both other people and property and your own car, making it more expensive.
Therefore, comprehensive car insurance policy usually has the highest premium among all the other types of car insurance policies. Hence the correct answer is A.
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Which of the following would cause consumers to demand fewer slices of pizza?
A. an increase in the supply of pizza slices
B. a decrease in the supply of tacos
C. an increase in the price of pizza slices
Answers
Answer:
C.
Explanation:
All the others make the supply of pizza larger, or high demand
In universal banking model, banks: Select one: a. Have growth of loans portfolio as their main strategy b. Focus on maximizing their net interest margins c. Offer wide range of financial services to their clients d. All choices are correct e. None of the choices is correct
Answers
B
Explanation
importance of constitutional law to Ghana's development
Answers
The importance of constitutional law to Ghana's development is it establishes the structure, procedures, powers and duties of the government, structure of the judiciary and legislature, and spells out the fundamental rights and duties of citizens.
What is constitutional law?It is body of law based on a ratified constitution or similar formative charter dealing with the fundamental principles by which a government exercises its authority. The the body of rules, doctrines, and practices that govern the operation of political communities is known as constitutional law.
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hexagon widgets wants to build its customer base and begins a huge marketing push. it begins advertising across various mediums, it hires public relations staff to drive publicity, and offers deep discounts on its widgets. this scenario is most likely part of the strategy in the marketing process.
Multiple Choice
pricing
competitive
promotion
benefit
economic
Answers
The "promotion" technique used in the marketing most certainly includes this scenario.
The importance of the marketing processThe benefit of marketing for a company is that it engages consumers and helps them decide whether to purchase your goods or services. A marketing strategy, which is a component of your business plan, also aids in establishing and sustaining demand, relevance, image, competition, etc.
What step in the marketing process comes first?Investigate Your Ideal Clientele or Audience: You'll decide who the ideal customers are for your company to market to as the first stage in developing a marketing strategy. Do some research on your intended audience beforehand. Analyze the demographics and interests of your present or potential customers for patterns.
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What are 2 key benefits of budgeting?
Answers
Budgeting allows for effective financial management, empowering individuals and organizations to control their finances, plan for the future, achieve goals, and enhance long-term security.
Budgeting offers several key benefits for individuals, households, businesses, and organizations. Here are two key benefits of budgeting:
Financial Control and Planning: Budgeting provides a framework for financial control and planning.
By setting clear financial goals and allocating resources effectively, individuals and organizations can have better control over their income, expenses, and overall financial situation. Budgeting allows for proactive decision-making, as it helps identify areas of overspending or potential savings, enabling adjustments and course corrections as needed.
It helps in prioritizing expenses, reducing wasteful spending, and ensuring that financial resources are allocated in line with priorities and objectives.
Goal Achievement and Future Security: Budgeting plays a crucial role in goal achievement and future security. By setting specific financial goals, such as saving for a house, education, retirement, or business expansion, budgeting helps individuals and organizations allocate resources towards these goals systematically.
It provides a roadmap for saving and investing, ensuring progress towards long-term objectives. Budgeting also helps in managing debt effectively, reducing financial stress, and building a strong financial foundation for the future.
By establishing savings and emergency funds, budgeting provides a safety net, enhancing financial resilience in case of unexpected events or economic downturns.
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Which of the following is a factor that is usually considered in a cost benefit
analysis?
A. Employee leasing
B. Reactive change
C. Shareholder recognition
D. Growth scenarios
Answers
Answer:
Growth scenarios
Explanation:
A P E X
Which of the following is not a feature of parliamentary democracy?
Answers
what is a formal business
Answers
Answer:
a business which is registered with the national business registration authority as a business and with the tax authority in terms of tax
Explanation:
I learned it from a lawyer
Hope this helps :)
Answer:
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Explanation:
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A company had beginning assets and liabilities were Rs. 100,000 and Rs. 50,000 respectively.
During the year, the company distributed Rs. 20,000 dividend. At the end of the year, the
company
has doubled its assets and liabilities. Find the net income earned by the company.
Answers
Answer: Rs. 120,000
Explanation:
At the end of the year, both assets and liabilities had doubled. New asset and liability figures are therefore:
Assets = Rs. 200,000
Liabilities = Rs. 100,000
Net income is part of equity and as there is no equity, net income must be the entire equity.
Assets = Equity + Liabilities
200,000 = Equity + 100,000
Equity = 200,000 - 100,000
= Rs. 100,000
From this Net income, dividends were distributed to the tune of Rs. 20,000. This should be added back to see the full figure.
= 100,000 + 20,000
= Rs. 120,000
Telephone companies offer lower long-distance rates at certain times of the day or week because at those times
A. The supply of telephone lines increases
B. Supply and demand are equal
C. Demand is greater than supply.
D. Supply is greater than demand.
Answers
Main Line Restaurant Group (MLRG) is a company that owns and operates a national chain of Italian themed restaurants. Each of its restaurants is equipped with a series of hoods that ventilate smoke from a wood-burning pizza oven to the outside via a roof vent. Last year, as part of a broader air pollution control law, Congress passed a statute that authorized the appro priate administrative agency to implement rules intended to decrease the amount of pollution caused by debris in the air from commercial use of wood -burning ovens . 1. What administrative agency would likely have juris diction under this statute ? 2. When Congress passes a law such as the one described above , what is this type of statute called ?
Answers
The administrative agency that would likely have jurisdiction under this statute is the environmental protection agency (EPA).
When Congress passes a law such as the one described above, this type of statute is called Public Law 104–1. and sometimes referred to as Clean Air Act Amendments of 1990.
What is the The Clean Air Act: 1990 Amendments?President George H. W. Bush signed the Clean Air Act revision into law on November 15, 1990, with a resoundingly bipartisan majority. With regard to the environment and the health of millions of Americans, the modifications were specifically made to address four significant threats: acid rain, urban air pollution, hazardous air pollutants, and stratospheric ozone depletion.
In order to make the law more practical, the changes also established a national operating permits mechanism and tightened enforcement to assist assure better adherence to the Act.
Note that the revisions included a number of innovative and forward-thinking new strategies for successfully attaining the air quality objectives and regulatory reform anticipated from these extensive amendments.
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Faith Bonds sells furniture and earns nine percent commission on her total sales. Last month she had $33,500 in sales. How much did she earn? *
Answers
Answer:
3015
Explanation:
33500*.09=3015
Answer: 2,865
Explanation: To get this answer you would have to divided 33,500 and 9%
Which quality management concept must be well-defined at the beginning of the project to help avoid rework and schedule delays?
Answers
The quality management concept which must be well-defined at the beginning of the project to help avoid rework and schedule delays is requirements.
Requirements managementRequirements management and quality management go hand in hand. Clear, well-defined requirements lead to less rework and schedule delays.In conclusion, we can conclude that the correct answer is requirements management.
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what are some ways the financial crisis in 2008 could've been avoided
Answers
The financial crisis in 2008 could've been avoided in some ways by Regulating the housing market, Proper regulation banks and financial institutions, Introduction of better accounting standards, Encouraging greater transparency, and Regulating credit rating agencies.
The global financial crisis of 2008 was a significant economic event that had a far-reaching impact on the worldwide economy. The crisis resulted in the collapse of numerous leading financial institutions, which led to unprecedented losses in the stock market, a decline in economic growth, and high levels of unemployment. It is commonly believed that the crisis could have been avoided if appropriate measures had been taken at the right time.
Here are some ways the financial crisis in 2008 could have been avoided:
1. Regulating the housing market: The financial crisis of 2008 originated from the housing market collapse. Banks and financial institutions had given loans to people who could not afford them, and when the housing bubble burst, a massive number of mortgages went into default. If the government had regulated the housing market more effectively, the financial institutions would not have been able to give out loans to risky borrowers, and the housing market would not have collapsed.
2. Proper regulation of banks and financial institutions: If banks and financial institutions were regulated more effectively, they would not have been able to engage in risky financial practices that led to the crisis. Regulators would have spotted the risky activities early on and would have been able to take corrective action before it was too late.
3. Introduction of better accounting standards: During the financial crisis of 2008, banks and financial institutions engaged in creative accounting practices to hide their losses. This deception made it difficult to ascertain the real situation of the banks and financial institutions, leading to a lack of confidence in the market. If better accounting standards had been introduced, this could have been avoided.
4. Encouraging greater transparency: The financial crisis of 2008 was partly caused by a lack of transparency in the market. If regulators had encouraged greater transparency, there would have been more information available to investors, which could have led to greater confidence in the market.
5. Regulating credit rating agencies: Credit rating agencies played a significant role in the financial crisis of 2008. They gave high ratings to toxic financial products, which misled investors and led to the collapse of the market. If credit rating agencies were regulated more effectively, they would not have been able to give high ratings to risky products, and the market would have been more stable.
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A team is working together to create a company's monthly newsletter. Josie chose the topic. David created the outline. Romy added details to the outline. Angie revised Romy’s work. Nate edited and published the message.
Answers
A team is working together to create a company's monthly newsletter. The employee who created the draft is B. David.
A group employee uses strong communication abilities, is an active listener, and develops and maintains credibility with colleagues. Colleagues cooperate with each other and observe their individual abilities towards completing a common mission or meeting a purpose to enhance performance and productiveness.
Teamwork is predicated on synergy and cooperation amongst participants. each crew member ought to put in his or her fine efforts into gaining knowledge of the process and be bendy enough to adapt to changing situations. The group's goals can simplest be carried out if each member collaborates, cooperates, and supports each other.
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Disclaimer:- your question is incomplete, please see below for the complete question.
A team is working together to create a company's monthly newsletter. Josie chose the topic. David created the outline. Romy added details to the outline. Angie revised Romy’s work. Nate edited and published the message.
Which employee created
the draft?
A. Josie
B. David
C. Romy
D. Angie
BRAINLIEST
Which two factors must operations managers consider when choosing facilities?
O Access to markets and capacity
O Access to markets and planning
O Access to markets and access to materials
O Access to materials and planning
Answers
Answer:
the answer is c because I got it right ok
How can a companies sales people help with product development?
Answers
A company's sales people can help with product development as they can be a source of ideas. The right answer is B.
Product development, is the process of conceptualising, designing, developing, and selling freshly produced or recently relaunched goods and services. The entire process of creating a product, from conception through market launch, is referred to as product development. Salespeople represent their companies by adding value for the clients of their companies.
They also help by taking charge of relationships, returning to their organisations the knowledge of their markets and customers. Sales provide vital customer and market analysis data for the needs of the product, as well as supplementary data like product feedback and potential improvement suggestions to product development.
The correct answer is option B.
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The question seems incomplete. The complete question is:
How can a company's salespeople help with product development?
A.They do not have a role in product development.
B.They can be a source of ideas.
C.They can sell new products.
D.They can create a prototype.