Cisco Systems Wishes to Analyze the Joint Impact of Its

question 73

Multiple Choice

Cisco Systems wishes to analyze the joint impact of its working capital investment and financing policies on shareholder return. The company has $24 million in fixed assets. Cisco wishes to maintain a debt ratio of 40%. The company's tax rate is also 40%. The following information was developed for the two policies under consideration (dollars in millions) : $$\begin{array} { l l l } & \text { Aggressive } & \text { Conservative } \\\text { Investment in current assets } & \$ 28 & \$ 34 \\\text { Amount of short term debt } & \$ 16 & \$ 10 \\\text { EBIT } & \$ 5.4 & \$ 5.8 \\\text { Interest rate-LTD } ( \% ) & 12.0 & 11.0 \\\text { Interest rate-STD } ( \% ) & 7.5 & 7.0\end{array}$$ ? For the aggressive approach, Cisco's ROE is ____ and for the conservative approach the ROE is ____.

• A) 4.18%; 3.77%
• B) 11.62%; 10.48%
• C) 6.97%; 6.29%
• D) None of these are correct

Understand the goals and processes of different psychotherapy approaches.

Identify key concepts and techniques used in insight and behavior therapies.

Recognize the role of therapist-client relationship in therapeutic outcomes.

Distinguish between insight therapies and behavior therapies.

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Definitions:

Explanatory Style

A psychological attribute that indicates how people explain to themselves why they experience a particular event, either positive or negative.

Locus of Control

Refers to the extent to which individuals believe they can control events affecting them.

Depressive Cognitive Triad

A concept in cognitive theory of depression focusing on negative views about the self, the world, and the future held by depressed individuals.

Vicious Cycle

A sequence of reciprocal cause and effect in which two or more elements intensify and aggravate each other, leading to a worsening situation.