A sunk cost refers to money that has already been spent and cannot be recovered. A manufacturing firm, for example, may have several sunk costs, such as the cost of machinery, equipment, and the lease expense on the factory. Sunk costs are excluded from a sell-or-process-further decision,...
4. D) It is offering a big reward to anyone who helps.5. B) Help people connect with each other.6. C) It does not use volunteers.7. D) They will find they have something in common.8. C) Preparations for Saturday’...
What is a good cash flow ratio? What does a negative debt-service coverage ratio mean? Are stocks considered equity or debt financing? Garwryk, Inc., which is financed with debt and equity, presently has a debt ratio of 75 percent. What is the firm's equity multiplier? How is the equi...
Business owners have myriad responsibilities such as the day-to-day operations of the company, staffing issues, customer complaints, inventory, advertising and other concerns. Hiring a CPA firm allows them to take at least one part of their company responsibilities off their shoulders and outsource ...
What is involved with determining the appropriate amount of financial leverage for a firm?Financial LeverageFinancial leverage is a measure of the financial risk of an enterprise. Higher the fixed financial obligation of an enterprise higher the financial risk....
Request a demo and see what we can do to help you.Ironclad is not a law firm, and this post does not constitute or contain legal advice. To evaluate the accuracy, sufficiency, or reliability of the ideas and guidance reflected here, or the applicability of these materials to your business...
That way, you’re buying your bonds from the federal government and eliminating any fees that may come with buying bonds through a middleman, as you would with a brokerage firm. Most bonds, except for I bonds, can be purchased elsewhere, however you can’t sell a bond before maturity ...
Discover the benefits and considerations of a discretionary account, tailored for investors seeking expert portfolio management and efficiency.
sdebt financingto its equity. To calculate the D/E ratio, divide a firm's total liabilities by its totalshareholder equity—both items are found on a company'sbalance sheet. The company’s capital structure is the driver of the debt-to-equity ratio. The more debt a comp...
are most often represented in terms offinancial ratiosthat must be maintained, such as a maximum debt-to-asset ratio or other such ratios. Covenants can cover everything from minimum dividend payments to levels that must be maintained in working capital to key employees remaining with the firm....