You Are Considering a Stock Investment in One of Two

question 121

Multiple Choice

You are considering a stock investment in one of two firms (LotsofDebt, Inc. and LotsofEquity, Inc.) , both of which operate in the same industry. LotsofDebt, Inc. finances its $100 million in assets with $90 million in debt and $10 million in equity. LotsofEquity, Inc. finances its $100 million in assets with $10 million in debt and $90 million in equity. What are the debt ratio, equity multiplier, and debt-to-equity ratio for the two firms?

• A) LotsofDebt: 90 percent, 10 times, 9 times, respectively; and LotsofEquity: 10 percent, 1.11 times, 0.1111 times, respectively
• B) LotsofDebt: 10 percent, 1.11 times, 0.1111 times, respectively; and LotsofEquity: 90 percent, 10 times, 9 times, respectively
• C) LotsofDebt: 90 percent, 1.11 times, 0.1111 times, respectively; and LotsofEquity: 10 percent, 10 times, 9 times, respectively
• D) LotsofDebt: 10 percent, 10 times, 9 times, respectively; and LotsofEquity: 90 percent, 1.11 times, 0.1111 times, respectively

Understand the SCOR model and its applications in supply chain processes.

Comprehend the relationship between order management and customer service in business operations.

Identify and apply key elements of service recovery in case studies.

Analyze the phases of order management and their interrelations.

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Definitions:

Fighting Feelings

The act of opposing or struggling with one's own emotions, often due to perceptions of them being unacceptable or because they conflict with personal values or societal expectations.

Counterconditioning

A behavioral therapy technique that involves replacing an undesired response to a stimulus with a desired response.

ACT Techniques

Refers to Acceptance and Commitment Therapy strategies, which involve accepting one’s emotional experiences and committing to action based on values and goals.

Differential Activation

The concept in psychology that certain stimuli can activate specific emotional, cognitive, or behavioral responses based on an individual's previous experiences.