Barette Consulting Currently Has No Debt in Its Capital Structure

question 84

Multiple Choice

Barette Consulting currently has no debt in its capital structure, has $500 million of total assets, and its return on invested operating capital (ROIC) is 14.5%.The CFO is contemplating a recapitalization where it will issue debt at a cost of 10% and use the proceeds to buy back shares of the company's common stock, paying book value.If the company proceeds with the recapitalization, its operating income, total assets, and tax rate will remain unchanged.Which of the following is most likely to occur as a result of the recapitalization?

• A) The ROA would remain unchanged.
• B) The ROIC would decline.
• C) The ROIC would increase.
• D) The ROE would increase.
• E) The ROA would increase.

Identify the genetic causes of specific diseases.

Recognize the applications of various neuroimaging and stimulation techniques in modifying brain behavior and treating neurological disorders.

Describe Freud's contributions to psychotherapy.

Understand the causes and characteristics of specific neurological and genetic disorders.

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Definitions:

Assimilation

The process by which individuals or groups adopt the culture, customs, and attitudes of another group, losing their original identity.

Extermination

Involves the deliberate and systematic destruction of a particular group of people, often referred to in contexts such as genocide or ethnic cleansing.

Ethnic Lines

Divisions or distinctions made between groups of people based on shared culture, ancestry, language, or national origin.

White Anglo-Saxon Protestants

A socio-political term referring to affluent and influential white Americans of Northern European, particularly British, descent.