Suppose That Debt-Equity Ratio (D/E) and the Sales-Asset Ratio (S/A)

question 53

Multiple Choice

Suppose that debt-equity ratio (D/E) and the sales-asset ratio (S/A) were two factors influencing the past default behavior of borrowers.Based on past default (repayment) experience, the linear probability model is estimated as: PD_i = 0.5(D/E_i) + 0.1(S/A_i) .If a prospective borrower has a debt-equity ratio of 0.4 and sales-asset ratio of 1.8, the expected probability of default is

• A)0.02.
• B)0.35.
• C)0.38.
• D)0.62.
• E)0.98.

Recognize the diverse membership composition of modern U.S. unions and their impact on labor relations.

Differentiate between labor and corporate organizations in terms of structure, democratic practices, formalized procedures, and specialized functions.

Analyze the role and objectives of the AFL-CIO in coordinating the union movement and its comparison to government levels.

Identify strategies used by organizations to remain nonunion and their implications on labor relations, including union avoidance, suppression, and substitution tactics.

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Definitions:

Fair Debt Collection Practices Act

A U.S. federal law designed to protect consumers from abusive, deceptive, and unfair debt collection practices by debt collectors.

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A financial institution providing banking services predominantly in urban or metropolitan areas.

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Regular payments set up over a timeframe for repaying a loan or other financial obligation.

Credit Report

A detailed report of an individual's credit history prepared by a credit bureau used by lenders to determine creditworthiness.