Liquid Shipping Inc

question 28

Multiple Choice

Liquid Shipping Inc. has developed the following data to help in a decision on whether to issue $40 million in bonds or common shares. If bonds are issued the following projections are made: ROE is 19%, EPS is $2.50, Times interest earned is 3, and the leverage ratio is 40%. If shares are issued, ROE is 11%, EPS is $1.30, Times interest earned is 5, and the leverage ratio is 22%. What is the best conclusion to make concerning this data?

• A) The company should issue some bonds and some shares because the returns are large enough to outweigh the risk.
• B) The company should issue shares because the returns are large enough to outweigh the risk.
• C) The company should issue bonds because the returns are large enough to outweigh the risk.
• D) The company should not issue bonds because the returns are too small to outweigh the risk.
• E) The company should issue neither bonds nor shares because the returns are too small to outweigh the risk.

Understand the physical and health challenges children encounter in middle childhood and strategies to improve their health.

Analyze the impact of the "American lifestyle" on physical development and ways to mitigate negative effects.

Evaluate research findings on external influences, such as toys, on children's self perception and body image.

Recognize the concepts of creativity and different types of thinking in children.

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Definitions:

Conflicts

Situations where two or more parties have incompatible goals, interests, or values.

Erik Erikson

A developmental psychologist and psychoanalyst known for his theory on the psychological development of human beings across eight stages of life.

Psychosocial Development

A concept in psychology that encompasses the influence of both psychological factors and social experiences on individual development across the lifespan.

Identity Versus Role Diffusion

A psychological stage proposed by Erikson indicating the conflict adolescents face in developing a clear sense of self or identity.