A Firm's Return on Assets Is 12 Percent and the Cost

question 54

Multiple Choice

A firm's return on assets is 12 percent and the cost of the firm's debt is 7 percent. Given a 0.7 debt-equity-ratio, what is the levered cost of equity? Assume that there are no taxes.

• A)7.0 percent
• B)12.0 percent
• C)13.6 percent
• D)15.5 percent

Identify the direction of shifts in the long-run supply curve for different types of industries.

Analyze the effects of firm entry or exit on the industry supply schedule and long-run average cost (LRAC) curve in different types of industries.

Understand different perspectives of feminism and their views on power dynamics and gender inequalities.

Recognize the role of social construction in gender roles and identity.

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Definitions:

Virtual Teams

Teams of people who work together from different geographic locations and rely on communication technology such as email, video or voice conferencing services to collaborate.

Self-managed

A system where employees or teams operate autonomously, making decisions without direct supervision.

Cross-functional

Refers to processes or activities that involve multiple departments or areas of expertise within an organization to achieve a common goal.

Attractive Outcomes

Results or consequences that are desired, appealing, or beneficial to an individual or group.