Last Year Swensen Corp

question 54

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%
• E) 3.14%

Learn the factors influencing the magnitude of induced voltage in a conductor.

Understand the time constants and their significance in the context of inductor charging and discharging.

Grasp the practical implications of electromagnetic induction in the design and functioning of electrical components and systems.

Understand the methods for spike suppression in electrical circuits.

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