Hernandez Corporation Expects to Have the Following Data During the Coming

question 46

Multiple Choice

Hernandez Corporation expects to have the following data during the coming year.What is Hernandez's expected ROE? $\begin{array}{lc}\text { Assets } & \$ 200,000 \text { Interest rate }&8\% \\\text { D/A } & 65 \% \text { Tax rate } &25\%\\\text { EB IT } & \$ 25,000\end{array}$

• A) 15.64%
• B) 16.43%
• C) 17.25%
• D) 18.11%
• E) 19.01%

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Definitions:

Stimuli

Refers to physical or environmental factors that can provoke a response or reaction in a living organism.

Reinforced

Strengthened or supported, often in the context of materials or structures, but also applicable to behaviors in psychology.

Positive Reinforcement

The presentation of a stimulus following a given behavior in order to increase the frequency of that behavior.

Operant Conditioning

A learning process through which the strength of a behavior is modified by reinforcement or punishment, a principle established by B.F. Skinner.