Edwards Enterprises Follows a Moderate Current Asset Investment Policy,but It

question 102

Multiple Choice

Edwards Enterprises follows a moderate current asset investment policy,but it is now considering a change,perhaps to a restricted or maybe to a relaxed policy.The firm's annual sales are $400,000; its fixed assets are $100,000; its target capital structure calls for 50% debt and 50% equity; its EBIT is $35,000; the interest rate on its debt is 10%; and its tax rate is 40%.With a restricted policy,current assets will be 15% of sales,while under a relaxed policy they will be 25% of sales.What is the difference in the projected ROEs between the restricted and relaxed policies.

• A)4.25%
• B)4.73%
• C)5.25%
• D)5.78%
• E)6.35%

Understand the anatomy and main functionality of the human cardiovascular system.

Identify various blood vessels and their roles in the circulation system.

Describe the factors that influence blood pressure and how it is regulated within the body.

Explain the mechanism of blood flow through the heart and the entire body.

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Definitions:

Forecasting

Estimation of future occurrences or trends using statistical methods and historical data.

HR Demand Forecasting

The process of estimating the future human resource requirements of an organization to achieve its goals.

Replacement Demand

The need to fill job positions that become vacant due to retirement, resignation, or dismissal, rather than due to the creation of new jobs.

Forecasting HR Demand

The process of estimating the future human resource needs of an organization, based on its business strategies, projected growth, and external market trends.