Zoey was asked by the company controller to determine if the company could borrow more money for an expansion project. when she calculated a leverage ratio, she determined that the company already had 1.5 times as much debt as equity.
do you agree with her assessment that the company should back off with borrowing more funds at this time?

a. yes, but if the company would increase sales, it could go ahead with borrowing more funds.
b. not necessarily. she should investigate the debt to equity ratios of other firms in the same industry.
c. yes, but the firm should pursue equity investment until the ratio equals 1: 1.
d. not necessarily. in poor economic times, it is good financial strategy for a firm to be highly leveraged.

Suzanna decided not to pay federal income tax, saying that paying federal income tax is optional. describe two possible consequences of suzanna’s decision

Aaron corporation, which has only one product, has provided the following data concerning its most recent month of operations: selling price $ 102 units in beginning inventory 0 units produced 4,900 units sold 4,260 units in ending inventory 640 variable costs per unit: direct materials $ 20 direct labor $ 41 variable manufacturing overhead $ 5 variable selling and administrative expense $ 4 fixed costs: fixed manufacturing overhead $ 64,200 fixed selling and administrative expense $ 2,900 the total contribution margin for the month under variable costing is:

Quick calculate the roi dollar amount and percentage for these example investments. a. you invest $50 in a government bond that says you can redeem it a year later for $55. use the instructions in lesson 3 to calculate the roi dollar amount and percentage. (3.0 points) tip: subtract the initial investment from the total return to get the roi dollar amount. then divide the roi dollar amount by the initial investment, and multiply that number by 100 to get the percentage. b. you invest $200 in stocks and sell them one year later for $230. use the instructions in lesson 3 to calculate the roi dollar amount and percentage. (3.0 points) tip: subtract the initial investment from the total return to get the roi dollar amount. then divide the roi dollar amount by the initial investment, and multiply that number by 100 to get the percentage.