One Way Analysts Measure the Ability of a Company to Meet

question 30

Multiple Choice

One way analysts measure the ability of a company to meet its obligations is to calculate the times interest earned ratio for any outstanding debt the company may have. How would a company with $100,000 of outstanding bonds paying 8.5% annually and income before interest and taxes of $50,000, calculate the interest coverage (accrual basis) ratio?

• A)Income before interest and taxes divided by the interest expense.
• B)Income before interest and taxes divided by carrying value of the bonds outstanding.
• C)Income before interest and taxes divided by the face value on bonds.
• D)Face value of the bonds divided by income before interest and taxes.

Appreciate the importance of data archiving for the future utility and secondary analysis in sociological research.

Recognize the significance of publicizing research findings for the sociological community and society at large.

Understand the steps involved in the sociological research cycle, particularly publication as a crucial phase.

Acknowledge the variety of sources (e.g., personal records, existing documents, official statistics) available for analysis in sociological research.

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Definitions:

Economics

The social science concerned with how individuals, institutions, and society make optimal (best) choices under conditions of scarcity.

Regulatory Capture

A situation where regulatory agencies, created to act in the public's interest, instead advance the commercial or special concerns of the industry or sector they are supposed to regulate.

Environmental Protection

The practice of safeguarding the natural environment through conservation, regulation, and sustainable practices.

Consumer Safety

Refers to the efforts and policies that protect consumers from products, services, or practices that may cause harm.