Last Year Swensen Corp

question 76

Multiple Choice

Last year Swensen Corp.had sales of $303,225,operating costs of $267,500,and year-end assets of $195,000.The debt-to-total-assets ratio was 27%,the interest rate on the debt was 8.2%,and the firm's tax rate was 37%.The new CFO wants to see how the ROE would have been affected if the firm had used a 45% debt ratio.Assume that sales and total assets would not be affected,and that the interest rate and tax rate would both remain constant.By how much would the ROE change in response to the change in the capital structure?

• A)2.08%
• B)2.32%
• C)2.57%
• D)2.86%

Identify the characteristics and examples of club goods.

Comprehend the economic rationale behind the allocation of goods in markets.

Discuss the implications of goods being either excludable or rival in consumption.

Understand the concept of the Tragedy of the Commons and its examples.

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Definitions:

Autonomic Nervous System

A subdivision of the peripheral nervous system that regulates involuntary functions such as heart rate, digestion, and respiratory rate.

Physiological Component

The aspect of a psychological process that is related to the physical functions of the body, such as brain activity, hormone levels, and nervous system responses.

Behavioural Component

Pertains to the visible behaviors or responses of a person when influenced by outside or inside forces.

Body Language

Non-verbal communication through gestures, expressions, and postures.