A 6 times-interest-earned ratio is considered acceptable.   Question 11 options:   1) True   2) False

The owners of a small manufacturing concern have hired a manager to run the company with the expectation that he will buy the company after five years. Compensation of the new vice president is a flat salary plus 75% of first $150,000 of profit, and then 10% of profit over $150,000. The purchase price for the company is set as 4½ times earnings (profit), computed as average annual profitability over the next five years. Does this contract align the incentives of the new vice president with the goals of the owners?

Kiwidale Dairy is considering purchasing a new ice-cream maker. Two models, Smoothie and Creamy, are available and their information is given below. (perform all calculation using 5 significant figures, and give your final answer to 1 decimal place). (a) What is Kiwidale's MARR that makes the two alternatives equivalent? Use a present worth comparison. Smoothie 17,000 Creamy 40,000 12 years 12,000 3,920 5,400 First Cost Service Life Annual profit Annual operating cost Salvage value A MARR which makes the two alternatives equivalent in term of PW is 12 years 4,800 1,200 2,450

Suppose that average labor productivity in Country B is $7,000, and that Countries B and E have the same real GDP per capita. Based on the information in the table, what must be the average labor productivity in Country E? Country A B CDE E Population (millions) 100 150 75 250 95 Multiple Choice O $9,625 Share of Population Employed (%) 60 55 50 45 40

Annual operating hours remain constant. True or false?

Respond to the question with a concise and accurate answer, along with a clear explanation and step-by-step solution, or risk receiving a downvote. A company wants to buy a production device for their new factory. They have two alternatives, whose cash flows are given in the following table. Salvage value is 20% of the initial cost. According to these cash flows, choose the best alternative knowing their payback periods. Alternative A Alternative B Initial Cost Annual Income Useful Life P3,000,000 P3,500,000 P1,200,000 P1,000,000 4 vears 8 years

= 1. (i) A utility function has the form U(w) aw³ +bw² where a, b E R. Assuming w > 0 and a 0, is U(w) ever suitable for a non-satiated and risk-averse investor? If it is, state the range of values of w this holds for as a function of a and b. You must include your working. (ii) Give an example of a utility function with DARA. Show all your working. (iii) An investor has IRRA. Would this investor prefer a fair gamble or to do nothing? Provide a short explanation of your answer.

Jason decides to buy a Camaro for $60,000 after graduating college. Jason retires in 35 years and his Camaro is worth $5,000.    Jessica decides to invest $60,000 after graduation and puts that money into retirement. The average rate of return is 6.5% per year.    At 35 years, how much more money does Jessica have over Jason?  Group of answer choices A. $578,735 B. $453,665 C. $543,735 D. ONE MILLION DOLLORSZ