Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Leverage or Gearing Ratios
Leverage or gearing ratios are as follow:
a) Debt ratio = Total debts/Total assets
Whereas total debt = fixed charge capital + liabilities.
The ratio signify the proportion of total assets such has been financed with long term and current liabilities as a debt ratio of 0.45 mean 45% of net asset has been financed along with debt though the remaining 55% was financed along with owners equity/capital.
b) Times interest earned ratio = Operating profit (earnings before interest and tax)/ Interest Charges
TIER called also interest coverage ratio.
These ratios signify the number of times interest charges can be paid from operating advantages. The higher the TIER, such better the firm signifying that either the firm has its interest charges are low or high operating profits.
Whether TIER is high due to low interest charges, so these signify low level of gearing/debt capital of the firm.
Business Ethics - Objectives of Business Entity Connected to the question of social responsibility is the matter of business ethics. Ethics are explained as the "standards of
Debentures of Middle Asia Reasons behind Unpopularity of Debentures of middle Asia's Financial Market as: i)Their par price is an extremely high value and as such they are
Objectives or Goals of Business 1. Profit maximization - This is a traditional and a cardinal objective of a business. This is so for the following purpose: To
Eye Field - Vertebrate Eye The development of eyes starts with evagination of the lateral wall of the forebrain. one on each side, which make the optic vesicles. By vital dye
Advantage of Bill - Source of Finance Advantages of necessitating a Bill as a Source of Finance They are a faster means of raising finance whether drawer is credible.
Government - Measuring Business Performance Government The Government is interested particularly in utility companies as KPLC, KPTC and such will offers public services -
Materials Management - Supply Chain Management Materials management was once a task undertaken without the assistance of computers. Today it is unthinkable as the speed of cal
hi
Allocation of financial resources to the different department can be done based on the past experience of the expenses and other available relevant information. Looking at the requ
capital structure of 38% common stock and 62% debt. A debt issue of 1000 par value, 5.6% bonds that mature in 15 years and pay annual interest will sell for $979.dividends have gro
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +91-977-207-8620
Phone: +91-977-207-8620
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd