You Have Been Given the Information Below on the Crum

question 27

Multiple Choice

You have been given the information below on the Crum Company.Crum expects sales to grow by 50% in 2011,and operating costs should increase at the same rate.Fixed assets were being operated at 40% of capacity in 2010,but all other assets were used to full capacity.Underutilized fixed assets cannot be sold.Current assets and spontaneous liabilities should increase at the same rate as sales during 2011.The company plans to finance any external funds needed as 35% notes payable and 65% common stock.After taking financing feedbacks into account,and after the second pass,what is Crum's projected ROE using the projected balance sheet method?
Information on the Crum Company:

• A) 16.98%
• B) 23.73%
• C) 25.68%
• D) 19.61%
• E) 23.24%

---

Definitions:

Infant Mortality Rates

The number of deaths of infants under one year old per 1,000 live births in a given year.

GDP

GDP (Gross Domestic Product) measures the total monetary or market value of all the finished goods and services produced within a country's borders in a specific time period.

Health-Quality Category

A classification system used to assess and categorize the standard or level of healthcare services and products.

Preexisting Condition

A medical condition that existed before an individual's health insurance coverage began.