Saffron Industries most recent balance sheet reports total assets of $42,000,000, total liabilities of $16,000,000 and stockholders' equity of $26,000,000. Management is considering using $3,000,000 of excess cash to prepay $3,000,000 of outstanding bonds. What effect, if any, would prepaying the bonds have on the company's debt-to-equity ratio

Answers

Answer 1

Answer:

A) Prepaying the debt would cause the firm's debt-to-equity ratio to improve from .62 to .50.

Explanation:

The computation of the impact is as follows:

The Debt equity ratio is

= Total liabilities ÷ total equity

Now

Debt equity prior to payment is

= $16,000,000 ÷ $26,000,000

= 0.62

And,

Debt equity after payment is

= $13,000,000 ÷ $26,000,000

= 0.50

So here as we can see that the debt equity would be improved from 0.62 to 0.50

Therefore the correct option is a.


Related Questions

In what section of the mortgage broker dual agency disclosure does the broker indicate the number of mortgage lenders he or she uses?

Answers

Answer:

yrutbuliynil ubyurvoybbbbbbbbbgiuhjk cdfghjkbbbvbbbbbbbbbnm

Explanation:

An investor whose highest priority is getting the largest gains possible, even if
it requires a lot of risk, would most likely invest in
O A. hedge funds
O B. bonds
O c. mutual funds
O D. savings accounts

Answers

Answer: A. Hedge funds

Explanation:

Aja receives the following email:
Dear Valued Credit Card Customer,
We have noticed suspicious activity in your account and have placed a security freeze on it. In order to activate it you will need to follow the link below. Please have your card handy and be prepared to verify personal information.
What action should Aja take?

Answers

Answer:

She should not follow the link

Explanation:

Because this is probably not really the credit card company, and they are trying to get personal information out of her.

When delegating a task, it is important to
b
C.
d.
Give away the most difficult things on your task list
Go over everything quickly and return to your own work
Keep the responsibility for getting the tasks done
Report everything that is expected of the person

Answers

Answer:

Is D

Explanation:

not B

DDDDDDD

Answer:

D.

Explanation: correct on edge 2021

Ralph is a purchase manager in a manufacturing business. He is about to buy raw materials to manufacture a new product. To begin, he thinks he must first consider the target market. What can Ralph do to carry out this task?

A. Visit trade shows and network with other producers

B. Refer to trade magazines and begin meeting up with top notch suppliers

C. Produce a small quantity, sell it, and assess the reactions of customers

D. Explore the demographics, such as age and locations, of his potential customers.

Answers

Answer:

d

Explanation:

took it

Answer:

D

Explanation:

correct on plato

A coupon bond which pays interest semi-annually, has a par value of Rs.1,000, matures in 5 years, and has a yield to maturity of 8%. If the coupon rate is 10%, the intrinsic value of the bond today will be __________.

Answers

Answer:

Rs.1,081.10  

Explanation:

The intrinsic value of the bond today is the present value of the bond's future cash flows discounted at the appropriate yield which in this case is the semiannual yield to maturity since the bond pays coupons twice a year.

Using the bond price formula below, the bond price is computed thus:

Bond price=face value/(1+r)^n+semiannual coupon*(1-(1+r)^-n/r

face value=Rs.1,000

r=semiannual yield to maturity=8%*8/12=4%

n=number of semiannual coupons in 5 years=5*2=10

semiannual coupon=face value*coupon rate*6/12=1000*10%*6/12=50

bond price=1000/(1+4%)^10+50*(1-(1+4%)^-10/4%

bond price=1000/(1.04)^10+50*(1-(1.04)^-10/0.04

bond price=1000/1.48024428 +50*(1-0.67556417 )/0.04

bond price=1000/1.48024428 +50*0.32443583 /0.04

bond price= 675.56+405.54 = Rs.1,081.10  

Which aspect is an essential feature of a joint venture between two companies that come together for global trade?

A.
shared production facilities
B.
shared marketing staff
C.
shared workspaces
D.
joint equity ownership

Answers

Answer:

D.  joint equity ownership

Explanation:

The aspect that is an essential feature of a joint venture would be joint equity ownership. That is because in a joint venture all parties combine all of their resources and share in both the liability and profits of the company. Joint Equity Ownership is the main part of this as it explains how these companies joint their assets in order to make as much profit as possible from their business venture.

which type of life insurance policy is best suited for paying off the outstanding balance of a 30-year mortgage in the event of the insured's death

Answers

Answer:

30-year decreasing term

Explanation:

Life insurance can be regarded as a form of insurance contract that exist between insurance policy holder as well as an insurer, in this case the insurer pledge some payment of amount of money so that he/she can get premium whenever the insured person dies. It should be noted that a 30-year decreasing term life insurance policy is best suited for paying off the outstanding balance of a 30-year mortgage in the event of the insured's death

Hi can you please answer this question for me?
___________________________ is the interest that the bank pays you on the principal plus on the interest that you earned the preceding year

simple intrest
compound interest
complex interest

Answers

Answer:

compound interest

Explanation:

Compounding interest refers to the action of adding the interest earned in a period to the principal amount. This action increases the principal amount invested. In compound interest, both the principal amount and the interest earned increases every financial year.

Compound interest contrasts with simple interest, which is the interest earned on the principal amount only. Whereas compound interest amount increases every year, simple interest remains constant throughout the life of the investment.

Answer:

Compound Interest

Explanation:

In the U.S., cash takes which two forms

Answers

its takes the form of paper money and coins

Read the stage direction: As the first of the mob reaches the bottom steps. The screen door opens and Goodman comes out, a man in his early forties who first greets them smiling and then letting the smile fade as he sees the faces. Based on the stage direction, what should the reader visualize? *


a group of people calmly approaching Goodman’s home
a group of confused people rushing to safety at Goodman’s home
a group of angry people approaching Goodman’s home
a group of people rushing to save Goodman from the outage

Answers

Answer:

C.

Explanation:

A group of angry people. L(-_-)\

                                                     \

Answer:c lol angry people

Explanation:

The situation that allows the broker to appoint one or more agents for the client within the same firm, is called

Answers

Answer:

Designated agency.

Explanation:

These form of professionals are seen to be run professional duties in several contracting agencies where they are assigned to. This can be seen in real estate, marketing firms, culinery agencies etc. But the above case discuss about brokers. And here this contracting firm is seen to a certain number of workers to a particular firm. In many cases, these agencies do these in a bid to circumvent the conflict of interest inherent in dual agency.

Explain why the Federal Reserve Bank might be concerned if the economy begins growing too quickly.

Answers

Answer:

To check against high inflation rate

Explanation:

Inflation is the steady increase in the prices of goods and services in the economy per period. Inflation is associated with economic growth. Naturally, as the economy grows, the prices of different products and services tend to increase.

When the economy is growing at a fast rate, the inflation rate tends to increase.  A rise in the inflation rate means prices are increasing at a high rate. When prices are unstable, planning and budgeting become challenging for individuals, firms, and the government. Inflation erodes the strength of a currency, which causes unstable prices and other economic challenges. The Federal Reserve keeps monitoring inflation and applies appropriate monetary policies to regulate economic growth and the inflation rate.

Explain how the amount of your deductible is likely to affect the amount of your premium.

Answers

Answer:

See below

Explanation:

A deductible is an amount you upfront to a health insurance provider before insurance coverage can begin. The insurance company will not pay for health care services before the deductible is paid.

There is an indirect relationship between the amount of deductible paid and the premiums to be paid. When the deductible amount is high, the insurance premiums are low.

If the insurance policy has a low deductible requirement, the insurance premiums will be high.

Describe the benefits of having a positive attitude.

Answers

you come off more respectful & with that people will also be more drawn to you. It will be easier to make bonds with people & gain others trust

The primary advantage of a positive attitude is it helps in achieving the objective of life by keeping clear mindsets.

What is a positive attitude?

The concept of having a positive mindset is one that desires and predicts success. To bring enthusiasm into one's life and play an active role in society, one must be ready to attempt new things.

It is a mindset that enables you to notice the positive aspects of others and your own successes rather than only the shortcomings, and it contributes to a healthy way of living.

It is said that if an individual sees positivity in surroundings it helps in bringing positivity in other life as well by reshaping their mentality with positive thoughts and creativity.

Those who have an optimistic outlook tend to be wealthier and more socially skilled because they consistently see the good in every circumstance, which facilitates effective communication.

Learn more about positive attitude, here:

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A major cause of the 2008 economic collapse was Group of answer choices the Contract with America. Bush's expansion of affirmative action programs. the war in Iraq. the collapse of the housing market.

Answers

Answer:

the collapse of the housing market.

Explanation:

The cause of the 2008 financial crisis was the deregulation of the financial sector which allowed banks to invest in real estate.

The resulting bubble in real estate prices led to the 2008 financial crisis.

Could someone help with the answer please

Answers

Answer:

Explanation idea generation

Answer:

Idea generation , i just did it

What does gaslighting mean?

Answers

it’s basically manipulate
Basically to manipulate

Price discrimination exists when a firm sells ________ goods at different prices to ________ groups of customers

Answers

The same
Different

Meaning it is discriminating against groups of people, with the same exact good.

Which person has the highest taxable income?
Person A: Earns $50,000 per year with $5,000 in deductions
Person B: Earns $60,000 per year with $10,000 in deductions
Person C: Earns $90,000 per year with $30,000 in deductions
Person D: Earns $100,000 per year with $60,000 in deductions
A. Person B
B. Person D
C. Person A
D. Person C

Answers

Answer:

D. Person C

Explanation:

Taxable income is the difference between the gross pay and all authorized deduction.  

For person A : taxable income = $50,000 - $5000 = $45,000

For Person B: taxable income =$60,000 - $10,000 = $50,000

For Person C: taxable income= $90,000 - $30,000 = $60,000

For Person D: taxable income=$ 100,000 - $60,00= $40,000

Person C has the highest taxable income with $60,000

Answer: person c

Explanation:

a pe x

Write a promotion policy below - include personal qualities and behaviors the company rewards and how they are rewarded, such as raise or promotion.

Answers

Answer:

When a company tells its employees that there’s no dress code and that it’s a casual work environment, that’s a trick. Don’t be fooled – there’s no such thing as a casual work environment when it comes to how you look. Fair or not, how you dress is super important.

Explanation:

For what purpose was Jims' superior going to recommend his name to the ATSL? Jim has been working as a logistician with a company for the past 25 years. He is a very efficient worker and has helped the company tremendously during crises. Thus, his superior, who is a member of the ATSL, told him that he is going to recommend his name for the membership.

Answers

Answer:

The main purpose that Jim's superior is recommending Jim to the ATSL is to enable Jim to be admitted as a member of the association.

Explanation:

The reward for work well done, they say, is more work.  Jim has proved that he is professional, efficient, and trustworthy.  No wonder, his superior is taking the responsibility of gaining him membership admission into the ATSL, a prestigious association for professional logisticians.  This is what a superior does for his subordinate to encourage him or her to grow professionally and acquire more relevant and up-to-date skills that will ensure his career growth and success.

Okay, Daily Question!
My friend is telling her crush she likes him and she wanted me to come up with a ship-name? I made some suggestions but she didn't like any of them and she gave me a deadline of 3:00 to give her a 'good' one. Here are the names:
Nate/Nathan + Addy/Addison
Have any ideas?

Answers

Explanation:

Naddison

NA

Natson

Naddy

Think of a successful business and research the founding of that business. What successes could you learn about from that business?

Answers

Answer:

Explanation:

There are many successful businesses that have risen from nothing. One business that stands out was the website X which is now known as Paypal. Looking at this business and many other successful ones I have learned that making a business successful relies on two main factors. Whether or not your product/service solves a real-life problem, and if you have your correct target audience. Getting both of these two factors correct almost guarantees that your business will be a success assuming you put in the effort.

I give you loooots of points for this very important question......


Truth....or daaare???!

Answers

Answer:

truth

Explanation:

Answer:

Truth

Explanation:

need help fast!!!!!!!! :(
Compound interest is usually better than simple interest because it pays

A: interest on the principal and the interest earned in each period.
B: interest on the entire principal rather than the interest in each period.
C: more, as it is matched by an employer’s 401k contribution.
D: more often throughout the year rather than once a year.

Answers

Compound interest pays interest on the principal and the interest earned in each period.

Option A. is correct.

Define Compound interest.

Compound interest is a type of interest that pays interest on both the principal or the interest earned over time.

Because compound interest is paid on both the principal or the interest gained in each period, it is frequently preferable to simple interest.

So, option A. is correct.

Find out more information about compound interest here:

https://brainly.com/question/14295570?referrer=searchResults

Interest on the principal and the interest earned in each period is the reason of Compound interest is usually better than simple interest. Hence, option A is correct.

What is simple interest?

Simple interest is the simple way of calculating of the interest of the loan or anything. The daily interest rate, the principle, and the number of days between payments are multiplied to calculate simple interest.

The formula of simple interest is SI = P × R × T, where P = Principal, R = Rate of Interest, and T = Time period.

Thus, option A is correct.

For more details about Simple interest, click here:

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The purpose of this category of interview questions is to learn about the interviewee’s personal attributes.
a.
General information questions
b.
Behavioral questions
c.
Character questions
d.
Stress questions

Answers

The correct statement will be that the purpose of the behavioral questions is that it helps to learn about the interviewee's personal attributes. So, the correct option is B.

Behavioral questions are an essential part of the interview as it tells about the interviewee's knowledge other than his educational and qualification skills applicable in the real world.

Behavioral questions are a set of questions asked by an interviewer to the interviewee in the rounds of interviews that follow. Such questions tell so much about the interviewee as it denotes their personal attributes.

Such questions help to determine the intelligence, presence of mind, practical behavior in a situation and an ideal set of practices followed by such person applicable to the work environment.

Behavioral questions also tell so much about how the person readily accepts a mistake committed and the steps they took in such a situation to rectify the mistakes.

Hence, the correct statement is B that the Behavioral questions' purpose in an interview is to tell about the interviewee's personal attributes already faced by such person.

To know more about behavioral questions, click the link below.

https://brainly.com/question/10125043

Answer:

B

Explanation:

Behavioral questions    

Nowlin Pipe & Steel has projected sales of 9,800 pipes this year, an ordering cost of $6 per order, and carrying costs of $1.50 per pipe.

Answers

Answer: See explanation

Explanation:

Here is the complete question:

Nowlin Pipe & Steel has projected sales of 9,800 pipes this year, an ordering cost of $6 per order, and carrying costs of $1.50 per pipe.

a. What is the economic ordering quantity?

b. How many orders will be placed during the year?

c. What will the average inventory be?

a. Annual Demand = 9800 pipes

Cost per order = $6

Carrying cost per unit = $1.5

EOQ = ✓[(2 x Annual demand x cost per order)/carrying cost per order]

= ✓2 × 9800 × 6/1.5

= ✓78400

= 280 units

b. Number of orders orders placed would be:

= 9800/280

= 25 orders

c. Average inventory would be calculated as:

= 280/2

= 140 units

An investment adviser representative may share in the profits and losses of a customer's account A) under no conditions B) provided a written contract is executed between the investment adviser and the client C) if the investment adviser representative deducts the advisory fee charged the customer from any profits earned D) as long as both the customer and the representative's employer give written consent

Answers

Answer: under no condition

Explanation:

An Investment Advisory Representative (IAR) are the individuals that are authorized and licensed who give investment advices to investment companies. They typically work as a financial advisor.

It should be noted that an investment adviser representative may share in the profits and losses of a customer's account under no conditions. They cannot share in the appreciation of capital.

Therefore, the correct option is A.

90 + 150 is what
a 140
b 240
c 350
d150​

Answers

Answer:

B 240

Explanation:

the answer is letter B 240
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