The price of a dozen eggs rises from $3 to $4. 70. In response to this price change, quantity supplied increases from 100,000 dozen eggs to 127,000 dozen eggs. What is the approximate price elasticity of supply for eggs?.

Answers

Answer 1

The approximate value of price elasticity of the supply of Eggs is 0.48.

Price elasticity of supply may be defined as the measure of the degree of responsiveness of supply to a change in price.

Price Elasticity of a commodity is given by the formula:

(% Change in Supply Quantity)/(% Change in price of the commodity)

According to the values given in the question:

% Change in Supply Quantity= [(127000-100000)/100000]×100

=>0.27×100

=>27 %

Now, % Change in price of commodity= [($4.70-$3)/$3]×100

=>0.56×100

=>56 %

Now, Price elasticity of supply = 27/56 = 0.48

Thus, Price Elasticity of the supply of eggs is 0.48.

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Related Questions

many large firms are moving to in-house vertically integrated structures where they have more control over each business unit.

Answers

Many large firms are moving to in-house vertically integrated structures where they have more control over each business unit, is the false statement.

What is a business unit?

A business unit is a discrete division within an organization that typically creates and implements its own procedures apart from the main business or brand while still adhering to the overall corporate guidelines.

Big companies frequently employ the business unit structure to more effectively manage and track divisional KPIs like sales or costs. An organized organizational structure for business units makes it possible for each unit to control its own revenues and costs, which can help organizations keep tabs on.

Thus, it is a false statement.

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a company holds $40,000 of 7% bonds as a held-to-maturity security. the journal entry to record receipt of a semiannual interest payment includes a debit to cash for $2,800 and a credit to interest revenue for $2,800.

Answers

The semi-annual interest payment would be received $1,400

Semiannual interest:

Divide the annual interest rate by 2 to calculate the semiannual rate. For example, if the annual interest rate equals 9.2 percent, you would divide 9.2 by 2 to find the semiannual rate to be 4.6 percent.

The interest rate is 7%, and the maturity amount is $40,000.

Consequently, the semi-annual interest payment would be received by

= Maturity amount × interest rate

= $40,000 × 7% ÷ 2

= $1,400

We split the interest rate by two because the interest payment is semi-annual, and we double it if a time period is specified.

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Erving goffman's pioneering exploration of how advertisements portray women as dependent upon men is an example of?

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Erving Goffman's pioneering exploration of how advertisements portray women as dependent upon men is an example of content analysis. Erving Goffman was a Canadian-born sociologist, social psychologist, and .The Times Higher Education Guide ranked him sixth among authors of works in the humanities and social sciences, trailing only Michel Foucault.

Pierre Bourdieu, and Anthony Giddens, but ahead of Jürgen Habermas. Goffman was the American Sociological Association's 73rd president. His analysis of symbolic interaction is his most well-known contribution to social theory. Beginning with his 1956 book The Presentation of Self in Everyday Life, this took the shape of dramaturgical analysis.

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The return that can be earned on investment opportunities available to investors in financial markets is called the _________________ cost of capital.

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The return that can be earned on investment opportunities available to investors in financial markets is called the Dividend cost of capital. Any location or system that gives buyers and sellers the ability to trade financial assets, such as bonds, shares, the various international currencies, and derivatives, is referred to as a financial market.

The connection between people with capital to investment and those who need capital is facilitated by financial markets. The stock market, bond market, foreign exchange market, commodities market, and real estate market are a few examples of financial markets and their functions. Financial markets can also be divided into listed.

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To open a margin account for a partnership, all of the following documentation is required except? a new account form b customer's agreement c partnership agreement d joint account agreement

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The correct answer is d. To open a margin account for a partnership, joint account agreement is not required. All other documents which include new account form, customer's agreement, and partnership agreement are required.

A document outlining the terms of a joint account that is held by the account holders. The joint account agreement specifies whether each account holder will be permitted to withdraw money from and deposit money into an account, or if all account holders should agree before either action can be taken. Both brokerage accounts and bank accounts which are held in the names of two or more people require joint account agreements.

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Jessica+purchased+136+shares+of+stock+at+$32+using+her+70%+margin+account.+her+maintenance+margin+is+40%.+jessica+has+no+other+securities+in+her+account.+at+what+price+will+she+receive+a+margin+call?

Answers

[DISCLAIMER :- The question asked is improper question. The complete question is given below :

Below is the complete question and hence, has been answered accordingly.

"Jessica Purchased 132 Shares Of Stock At $ 32 victimization Her 17th brokerage account. Her Maintenance Margin Is four-hundredth. Jessica Has No alternative securities in her account .At what worth can she receive a call ?"]

Jessica receives a call of $16.

A call happens while the share of the equity within the account drops at a lower place the maintenance margin demand.A call happens once the proportion of associate degree investor’s equity in an exceedingly brokerage account falls below the broker’s needed quantity.The equity to your brokerage account is that the price of your securities less however tons you owe to your non depository financial institution. this residue quantity is brought up because the initial margin demand. during this scenario, the initial preservation margin demand is forty p.c of the acquisition rate of the modification. For the dealer to shop for the complete 100 shares, they have to take care of a balance of four-hundredth of the modification purchase quantity of their brokerage account. you'll without problems decide associate degree organization's financial gain margin by victimization subtracting the fee of product sold COGS from its overall revenue and dividing that figure by victimization the sales.

Purchase = 136 shares of stock

Amount = $38

Margin % distinction = 70-40= 30

% difference = 70+40=110

                & = 110-100=10%

[here,

30% = 0.3

We know, 70% of 136 is 95.2

Therefore, 100 percent of thirteen is 13.6,

Hence, 95-13= 82]

Applying formula =) 136*32*(0.3) / 82

                            =) $16

Hence, the call received by Jessica is $16.

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when the price of a firm’s product falls, the profit on each unit also falls. accordingly, profit‐maximizing managers increase their production in order to increase their total profit.

Answers

When the cost of a company's product decreases, so does the profit earned on each unit. Therefore, profit-maximizing managers boost their output in an effort to boost their overall business profit.

A business is an organization or entrepreneurial body that engages in commercial, industrial, or professional activities. Businesses can be nonprofit organizations or for-profit enterprises. Among the many businesses, structures are partnerships, corporations, limited liability companies, and sole proprietorships.

single-person business. The most prevalent form of business organization is a sole proprietorship. Corporation, Limited Liability Company, Partnership, etc.

A business purpose explains the motivation for the founding of a company.

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consider a coupon bond that has a par value of ​$1 comma 000 and a coupon rate of 12 ​%. the bond is currently selling for ​$1 comma 080.80 and has 2

Answers

It is given in the question the coupon par value, coupon rate and it's current selling value with it's maturity period and we need calculate Yield to maturity of the coupon, to determine how much amount we are going to get from the coupon, when it reaches the maturity period.

Par value of bond 800

coupon rate 12%

SP of bond 904.13

Years to maturity 22

Yield to maturity = [800*0.12+(800-904.13)22] / (800+904.13) / 2

                         = (96 - 4.73318) / 852.0625 = 0.107113 = 10.71%

The yield to maturity is one of the criteria that bond and fixed income investors most regularly use to assess possible investments.

The YTM, which is based on three important assumptions, is the anticipated yearly rate of return that a bond will receive until maturity.

The return is based on the supposition that the bond buyer kept the debt security until its maturity date.

Principal repayment and all mandatory interest payments were completed on time.

The yield-to-maturity and the coupon payments were both invested at the same rate

In other words, a bond's yield to maturity (YTM) is its internal rate of return (IRR), or the discount rate that brings the bond's present value (PV) of all its future cash flows to par with its current market price.

Therefore, the Yield to Maturity is 10.71%

Your question is incomplete. Kindly refer the missing part below:

Consider a coupon bond that has a par value of ​$800 and a coupon rate of 12​%. The bond is currently selling for ​$904.13 and has 22 years to maturity. What is the​ bond's yield to maturity​(YTM)?

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bianca is an underwriter for a commercial insurance firm that recently began using an entirely new information management system. even after several trainings, many of bianca’s coworkers remain confused by some functions of the new system. rather than call the helpline, the coworkers ask bianca for help. bianca believes it is ethical to pause her work to help the others learn the new system, so that they might choose her to be the team leader of the next big project. this type of thinking reflects the approach to deciding ethical dilemmas.

Answers

Answer:individual approach

Explanation:

A company uses the allowance method to account for bad debts. What is the effect on each of the following accounts of the collection of an account previously written off?.

Answers

Answer:

d. No effect No effect

Explanation:

When allowance method is followed then bad debts allowance is created for non-collectible debts balance.

This balance clearly depicts the debtors which are not collectible and then set off against accounts receivables balance.

When an already written off bad debt is recovered, such recovery increases income only, and does not effect any allowance account or accounts receivable account.

As for this already expense had been allowed.

And amount recovered is no more standing due in accounts receivables balance.

Thus, correct option is

d. No effect No effect

Midwestern corporation issues bonds. southern corporation issues stock. which corporation used equity financing?

Answers

Southern corporations but not Midwestern corporations used equity financing as Midwestern corporations issued bonds. southern corporation issues stock.

What exactly does equity financing mean?

Selling a piece of your company in exchange for a cash investment is equity financing. Equity financing carries no responsibility for repayment, in contrast to a loan. Instead, investors purchase business stock in order to profit from dividends (a portion of the firm's income) or from the ultimate sale of their shares. The private placement of stock with investors and public stock offerings are the two main forms of equity financing. Debt financing is different from equity financing in that the former entails borrowing money while the latter requires selling a piece of the company's shares.

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If a company has advance ticket sales totaling $2,000,000 for the upcoming football season, the journal entry to record the receipt of cash would consist of a:_____.

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If a company has enhanced price ticket sales totaling $2,000,000 for the imminent soccer season, the magazine entry to document the receipt of cash would include a: Debit cash, credit Unearned sales.

A company is a felony entity shaped by using a collection of individuals to interact in and perform a commercial enterprise—commercial or industrial—company. An organization can be prepared with numerous approaches for tax and economic liability functions depending at the company regulation of its jurisdiction.

The imperative musical company meudy approximately the look for love and cocktails inside the big Apple is turned on its head in Marianne Elliott's revelatory staging, wherein musical theater's maximum iconic bachelor turns into a bachelorette. At Bobbie's 35th party, all her friends are questioning why isn't she married.

The three sorts of business entities that might be most common are the only proprietorship, confined legal responsibility company (LLC), and employer. each has its own awesome benefits and disadvantages, depending on what you and your enterprise need.

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finch construction company expects to build three new homes during a specific accounting period. the estimated direct materials and labor costs are as follows. expected costs home 1 home 2 home 3 direct labor $ 60,000 $ 93,000 $ 171,000 direct materials 102,000 131,000 189,000 assume finch needs to allocate two major overhead costs ($48,600 of employee fringe benefits and $29,540 of indirect materials costs) among the three jobs.

Answers

The total cost for each house are: $178,140, $247,120, $398,880.

Total cost

1. The allocation bases rates will be:

                               Employee fringe benefits Indirect materials

Estimated overhead cost $48,600             $29,540

Total overhead driver          $324,000             $422,000

($60,000+$93,000+$171,000)    ($102,000+$131,000+$189,000)

Overhead allocation rate     15%                          7%

2. The total cost of each house is:

                              Home 1     Home 2    Home 3                     Total

Direct labor          $60,000 $ 93,000       $171,000                 $324,000

Direct materials  $102,000 $131,000          $189,000              $422,000

Fringe benefit cost allocated $9,000  $13,950 $25,650       $48,600

($60,000 x 0.15)($93,000 x 0.15)         ($171,000 x 0.15)

Indirect materials cost allocated $7,140  $9,170 $13,230      $29,540

($102,000 x 0.07) ($131,000 x 0.07) ($189,000 x 0.07)

Total cost $178,140         $247,120 $398,880                  $824,140

Therefore the total cost for each house are: $178,140, $247,120, $398,880.

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The complete question is:

finch construction company expects to build three new homes during a specific accounting period. the estimated direct materials and labor costs are as follows. expected costs home 1 home 2 home 3 direct labor $ 60,000 $ 93,000 $ 171,000 direct materials 102,000 131,000 189,000 assume finch needs to allocate two major overhead costs ($48,600 of employee fringe benefits and $29,540 of indirect materials costs) among the three jobs.

Required:

Choose an appropriate cost driver for each of the overhead costs and determine the total cost of each house. (Round "Allocation rate" to 3 decimal places.)

If the contribution margin ratio increases, the break-even point in sales dollars will?

Answers

The sales break-even point declines as the contribution margin ratio rises.

More about break-even point:

The breakeven point (break-even price) for a transaction or investment can be determined by comparing an asset's market price to its starting cost. When the two prices are equal, the breakeven point is attained. In either unit (quantity) or revenue (sales) terms, the break-even point (BEP) or break-even level describes the volume of sales required to cover all costs, including both fixed and variable costs to the business. At the break-even verge, the firm has not made a profit.

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a new supermarket, the deluxe mart, collates its sales data using scanners at the point of purchase. it uses this data to identify the products to stock and the type of content and media to use to attract customers. in this scenario, the deluxe mart is most likely using

Answers

In this instance, the deluxe mart is most likely using "related research".

What is Business research ?
The act of acquiring thorough data on all facets of business and applying that data to boost sales and profitability is known as organisational research. Such a study helps companies determine which products and services are the most profitable or in demand. In order to uncover possibilities and achieve corporate objectives, it can be summed up as the gathering of knowledge or information for professional or commercial purposes. Any topic might be the subject of study in the corporate world. When people talk about "business research," they usually imply "research questions" that are posed to figure out where money could be invested to increase sales, profitability, or market share. This kind of research is necessary to make wise decisions.

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A company has net working capital of $1,591. if all its current assets were liquidated, the company would receive $5,533. what are the company's current liabilities?

Answers

The company's current liabilities is $3,942

What is current liabilities?

The company's current liabilities are those obligations owed by the company which are due for payment within a year, it can be determined on the basis that the net working capital is current assets minus current liabilities

net working capital=current assets-current liabilities

net working capital=$1,591

current assets=$5,533

current liabilities=unknown(assume it is CL)

$1,591=$5,533-CL

CL=$5,533-$1,591

CL=current liabilities=$3,942

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philip wants to donate $208 to united way, but he wants to give it over the coming year. if he signs up to have a regular amount withheld from his paycheck each week and given to united way, how much will be taken from his pay for that purpose every week?

Answers

Philip wants to donate $208 to the united way, but he wants to give it over the coming year. if he signs up to have a regular amount withheld from his paycheck each week and given to united way, $5 will be taken from his pay for that purpose every week.

To sum up, a total is the definition of an amount. A restaurant bill for four individuals that totals $50 is an example of the costs of four meals that come to $50.

The size or quantity of non-count nouns is indicated by the word "amount." You can count the volume of air in a bottle or the volume of water in a beaker, for instance. In a similar manner, you can determine how much cat hair is visible on a blanket or how much salt a patient has just consumed.

Traditionally, an employer would issue a paper document known as a paycheck—to pay an employee for services rendered.

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A taxpayer wishes to take a deduction for a worthless debt. without proper documentation, the taxpayer faces the risk that the irs will assert that:____.

Answers

In the given scenario the option that the debt became worthless in an earlier period, and the statute of limitations prevents the taxpayer from amending that earlier return is functionally correct.

The reason for that is when the surrounding facts and circumstances show that there's no reasonable hope that the loan will be repaid, the debt loses all of its value. You must demonstrate that you've made a reasonable effort to collect the debt in order to prove that it is worthless.

If you can demonstrate that a court judgment would be impossible to collect, you do not need to file a lawsuit. Only the year when the debt is rendered worthless is eligible for the deduction. You can decide that a debt is worthless before it is due, so there is no need to wait.

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List two requirements for a fulfilling job

Answers

Answer:A sufficient salary

Fulfilling jobs pay you a wage or salary that enables you to have financial security. Beyond being able to just pay your bills, if you work in a fulfilling job, you also have enough money to prepare for major expenses and purchases, save for retirement and occasionally reward yourself for your hard work. Even if an opportunity has several positive aspects, if you're concerned about your financial well-being, the added stress inevitably detracts from your ability to do your best.

However, fulfilling jobs don't have to have high salaries or offer bonuses. Despite a conventional emphasis on maximizing income, people who prioritize meaningful work over jobs that simply pay the most often find greater satisfaction.

2. Interesting assignments

Professionals who find their work genuinely interesting experience greater fulfillment because it dependably satisfies their curiosity. Individuals might have vastly different interests, but they can all experience the same satisfaction that comes from expanding their understanding of subjects that matter to them. For instance, engineers may get consistent enjoyment from solving complex physics problems, while a server in a restaurant may love meeting new people and learning about their backgrounds. When considering opportunities, let your long-held interests serve as a guide for the type of assignments and projects that you'd find gratifying.

Explanation:

the following factors can help decide whether or not to engage in market research activities, except .

Answers

The  factors that can not help decide whether or not to engage in market research activities, is The product's current position in the product life cycle.

What is market research activities?

Market research  can as well be described as the  marketing research which are those actions or activities that is needed to carried out so as to be able to gather information that is needed about the  market needs and preferences.

It should be noted that this  helps companies understand how  their target market works as well as how the audience feels and behaves, however factors that can help decide whether or not to engage in market research activities, are:

The time needed to gather research.The cost versus the benefit of having the findingsThe risk level of the business decision

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CHECK THE COMPLETE QUESTION:

the following factors can help decide whether or not to engage in market research activities, except .

The time needed to gather research

The product’s current position in the product life cycle

The cost versus the benefit of having the findings

The risk level of the business decision

Amazon's e-commerce website and application are available 24/7, nearly everywhere and at all times, which of the features of e-commerce technology does this describe?

Answers

The e-commerce website and app for Amazon are accessible around-the-clock, almost everywhere, and at all times, Ubiquity feature of e-commerce technology is described here.

More about Ubiquity:

The word "ubiquity" generally refers to someone being present physically in multiple locations at once or being pervasive. Ubiquity is the ability of your visitors or customers to access a service from any location, on any device, at any time in the context of eCommerce and customer support.

Users can explore things in a market for less money thanks to ubiquity. Irrespective of where they are, consumers can get any information whenever and wherever they choose. A buyer no longer needs to travel to a market, saving them time and money. Overall, it conserves the mental effort required to traverse a market area.

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The action toy company has decided to manufacture a new train set, the production of which is broken into six steps. the demand for the train is units per 40-hour workweek:__________

Answers

Production is the organized activity of transforming resources into finished products in the form of goods and services; the objective of production is to satisfy the demand for such transformed resources”.

‘Subst in equation (1) he various values and obtain the cycle me

-4ohoursx60mintes

4.800unts

| Minutes

Therefore the  in per unit Otis operations 0.5 minutes oF 90 secs,

Cytetime =

Calculate the thecal minimum number of workstation by using the flowing formula

a= shown below

“Theoretical minimum number of work statons= "24st

‘Lifetime

20430415415 +1030

“Theoretical minimum number of work stations= a

Production is the manner of making or production goods and merchandise from raw substances or additives. In other phrases, manufacturing takes inputs and uses them to create an output that is in shape for intake – a good or product which has price to an cease-consumer or client.

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Identify each type of retirement account according to whether the individual contributor pays income taxes on the contribution (posttax) or not (pretax) at the time of the contribution.

Answers

Pick out each sort of retirement account: it's miles a qualified retirement plan sponsored by means of an agency.

A few eligible employees can make contributions that are salary deferral. Contributions may be made put up-tax or pre-tax. There are a few regulations on the withdrawal restriction as personnel can not withdraw the assets to a positive extent, if employees do so, they will be penalized.

A man or woman's retirement account in America is a shape of pension furnished by many financial establishments that gives tax blessings for retirement savings. it's miles a belief that holds funding belongings bought with a taxpayer's earned earnings for the taxpayer's eventual advantage in the antique age.

An IRA, or personal retirement account, is an account on your retirement that enables you to postpone paying taxes till the money is withdrawn. it is similar to a 401(okay), however, in preference to the account being managed through your business enterprise, that is an account you pick and manage yourself.

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indicate the effect of each transaction and the balances after each transaction: for those boxes in which no entry is required, leave the box blank. for those boxes in which you must enter subtractive or negative numbers use a minus sign. (example: -300)

Answers

Increases Cash by $50,000. Increases Common Stock by $50,000.

Increase the Supplies by $4,000. Increases A/P by $4,000.

Decreases the Cash by $2,300. Decreases A/P by $2,300.

Increases Cash by $13,800. Increase in  Commissions Earned $13,800.

Increases Rent Expense - Office and Rent Expense - Equipment by $5,000. Decreases Cash by $5,000.

Increase the Automobile Expense by $1,150. Increase the Miscellaneous Expense by $300. Decrease the Cash by $1,450.

Increases Expense of salary by $2,500. Decrease Cash by $2,500.

Increases Supply Expense by $1,300. Decreases Supplies by $1,300.

Increases A/R by $12,500. Increases Commissions Earned by $12,500

Increase the  Dividends paid $3,900. Decrease the Cash by $3,900

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True or false: the market price of a good reflects its highest-valued alternative use.

Answers

The market price of a good reflects its highest-valued alternative use- True.

   One of the most fundamental ideas in economics is the law of demand. It explains how market economies distribute resources and set the prices of goods and services that we see in daily transactions by combining the law of supply.

   According to the law of demand, the quantity bought varies inversely with price. In other words, the quantity demanded decreases as the price increases. Because of declining marginal utility, this happens. In other words, consumers utilize the initial units of an economic good they buy to fulfill their most pressing requirements first, and they use the subsequent units to fulfill progressively lower-valued goals.

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what is the main role of functional departments in organizations where projects are the dominant form of business, such as construction and software?

Answers

The main role of functional departments in organizations where projects are the dominant form of business, such as construction and software is that Provide support/assistance as needed.

What is a Functional organisational structure?

The organisation is divided into departments according to their functions using a functional structure. Employees are organised into roles and each is led by a functional manager. Functional managers make sure that workers are efficiently utilising their skills by having prior expertise in the roles they supervise. A functional structure that makes the most of departmental expertise aids businesses in achieving their goals.Employees are arranged in an organisational chart according to their functions in a functional organisational structure. Role hierarchy is depicted in this diagram (e.g., president, vice president, finance, sales, customer service, administration, etc.).Each department has a head who is accountable for it, aiding the company in maintaining performance consistency and quality.

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many large firms are moving to in-house vertically integrated structures where they have more control over each business unit.

Answers

False, many large firms are moving to in-house vertically integrated structures where they have more control over each business unit.

A business unit is a distinct component inside an organisation that frequently develops and implements its own processes separately from the primary business or brand while yet conforming to the general corporate regulations. the business unit structure is typically used by big brands to better manage and monitor divisional KPIs like sales or costs. An organised business unit structure enables each unit to manage its own revenues and expenses, which can help businesses track and lower their overall expenditures related to various departmental duties.

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A school is organizing a weekend trip to a nature preserve. for each student, there is a $60 charge, which covers food and lodging. there is also a $40 charge per student for the bus. the school must also pay a $30 cleaning fee for the bus. if the total cost of the weekend is $4,030, how many students will be going on the trip? 31 students 40 students 41 students 66 students

Answers

If a school is organizing a weekend trip to a nature preserve. for each student, there is a $60 charge, if the total cost of the weekend is $4,030, The number of  students will be going on the trip is: 40 students.

Number of student on a trip

Given:

Cost of weekend trip = $4,030

Cost of cleaning  the bus = $30

Cost of food and lodging per student = $60

Bus charges per student = $40

Hence:

Total cost = $60 + $40

Total cost=$100


Using this formula to find the number of students going for the trip

Number of student=Cost of weekend trip -Cost of cleaning  the bus/Total cost

Number of student=$4,030-$30/$100

Number of student=$4,000/$100

Number of student=40 students

Therefore If a school is organizing a weekend trip to a nature preserve. for each student, there is a $60 charge, if the total cost of the weekend is $4,030, The number of  students will be going on the trip is: 40 students.

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Answer:

B

Explanation:

I got right on exam

evaluate sources of funding that are used to construct the safeguarding budget in own area of responsibility

Answers

The principal source of funding, use to construct our budget is the money we get from partners and the authorities to run many safeguarding budgets for our youth programmes. presently as part of my new function, we're placing a price range together alongside the Council to run the network coach function for younger humans no longer in education, employment, and training.

The cash we have been allocated for running safeguarding budget duty lies in the groups and the manager's responsibility. It is our reasonability to budget this cash that we can be receiving. another source of funding comes from charitable donations, as an organisation Brathay believe is a registered charity and wherein there are shortfalls or need for profits to support individuals, we are running with the organisation and are able to step in.

The outside source of funding, our bodies to set a finances plan for a way much is given for wages as well as what's spent on the transport of that programme. Three analyse the impact of an insufficient budget on carrier transport. the insufficient price range may have a disastrous impact on provider delivery first it can lead to the overall delivery being negative and have an effect on the safety of the programme.

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The times interest earned ratio is calculated by dividing net income by interest expense.
true/ false

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The time's interest earned ratio is calculated by dividing net income by interest expense is False.

Earnings earlier than interest and taxes are divided by using total hobby payable on debt. The time's hobby earned ratio is identical to internet income plus interest cost and income tax fee the numerator divided by using interest price denominator. The interest charge sincerely earned by using bondholders is referred to as the. coupon charge. rings earlier than hobby and taxes cost divided with the aid of interest expense.

A variation on the instances hobby earned ratio is to additionally deduct depreciation and amortization from the EBIT discern within the numerator. it could be calculated both by way of dividing the organization's market capitalization via its total sales over a delegated duration usually three hundred and sixty-five days or on an in-step with percentage basis by means of dividing the inventory charge by means of income in keeping with share. The PS ratio is likewise called sales more than one or sales multiple. measures how in many instances a company should cowl its interest prices all through a given length.

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