Exhibit 14 -Refer to Exhibit 14

question 109

Multiple Choice

Exhibit 14.5
Use the Information Below for the Following Problem(S)
$$\begin{array} { l c c } & \text { Wal-Elue } & \text { Industry } \\ \text { DPS } & 1.00 & 1.50 \\\text { Total As5et Tunover } & 3.20 & 2.50 \\\text { Net Profit Marpin } & 3.50 \% & 3.00 \% \\\text { EpS } & 4.00 & 3.00 \\\text { Total As5ets/Equity } & 3.00 & 4.00\end{array}$$
-Refer to Exhibit 14.5.What are the expected sustainable growth rates for Wal-Blue and its industry?

• A) 25.2% and 15.0%
• B) 30.0% and 17.5%
• C) 25.2% and 17.5%
• D) 27.5% and 12.5%
• E) 30.0% and 15.0%

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Definitions:

Social Regulation

Rules imposed by government aimed at improving societal welfare, focusing on areas such as health, safety, and the environment, rather than on economic matters.

Natural Monopoly

A market structure where a single firm can produce at a lower cost than can two or more firms, justifying limited competition.

Unintended

Refers to effects or outcomes that were not anticipated or planned for.

Deregulation

The reduction or elimination of government power in a particular industry, usually with the goal of increasing competition and efficiency.