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.

Distinguish between Edge's privacy features and regular browsing modes.

Recognize the importance of Universal Windows Apps and their compatibility across different devices running Windows 10.

Utilize web notes and annotations for personal or professional purposes.

Understand the concept and functionalities of the semantic web.

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Definitions:

Perception

The process of organizing, interpreting, and understanding sensory information.

Cultivation Theory

A theory in communication that suggests long-term exposure to media, especially television, shapes viewers' perceptions of reality.

Socializing Agent

An individual, group, or institution that plays a role in integrating individuals into society, teaching social norms, and values.

Modern Society

A society characterized by advanced industry, technology, and a high level of cultural, economic, and political complexity.