Tapley Inc

question 69

Multiple Choice

Tapley Inc.'s current (target) capital structure has a target debt ratio (D/TA) of 60 percent.The firm can raise up to R5 million in new debt at a before-tax cost of 8 percent.If more debt is required, the initial cost will be 8.5 percent, and if more than R10 million of debt is required, the cost will be 9 percent.Net income for the previous year was R10 million, and it is expected to increase by 10 percent this year.The firm expects to maintain its dividend payout ratio of 40 percent on the 1 million shares of ordinary shares outstanding.If it must sell new ordinary shares, it would encounter a 10 percent flotation cost on the first R2 million, a 15 percent cost if more than R2 million but less than R4 million is needed, and a 20 percent cost if more than R4 million of new outside equity is required.Tapley's tax rate is 30 percent, and its current share price is R88 per share.If the firm has an unlimited number of projects which will earn a 10.25 percent return, what is the maximum capital budget that can be adopted without adversely affecting shareholder wealth?

• A) R32.0 million
• B) R15.9 million
• C) R23.0 million
• D) R10.6 million
• E) R26.5 million

Distinguish between ethical theories focused on justice and those focused on care.

Realize the implications of considering relationships and connectedness in ethical decision-making.

Understand John Fuller’s pyramid of concepts in peacemaking criminology.

Grasp the gender differences in moral development and ethical consideration as presented by scholars like Gilligan, West, and Noddings.

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Definitions:

Social Contacts

Interactions with others that can range from casual encounters to deeper relationships, important for social development and support.

Age Discrimination

Prejudice or discrimination against individuals or groups based on their age, especially prevalent against older adults in the workplace and other domains.

Early 20th Century

A period that refers to the first few decades of the 20th century, often characterized by rapid industrialization, technological progression, and significant social changes.

Older Adult Workers

Individuals within the older segment of the workforce, typically considered to be those past middle age but not yet retired.