Kat Owns and Manages a Small All-Equity Firm

question 41

Multiple Choice

Kat owns and manages a small all-equity firm.If she works 40 hours a week,the firm's annual EBIT will be $38,000.If she increases her hours to 45 a week,EBIT will increase to $43,000.The firm has a current value of $210,000.Kat wants to expand the business and needs $76,000 to do so.The firm can borrow the needed funds at an interest rate of 6.7 percent,or it can issue equity.Ignore taxes.Kat will prefer

• A)debt with a 40-hour week as that option provides her with the highest cash flow.
• B)debt with a 45-hour week as her cash flow will be $5,000 greater than her next best option.
• C)equity with a 45-hour week as her cash flow will be $5,006 higher than a 45-hour week with debt.
• D)equity with a 40-hour week as that option provides her with the highest cash flow.
• E)debt with a 45-hour week as her cash flow will be $31,573.

Distinguish between inherited and learned behaviors in humans and other animals.

Comprehend the significance of brain structures and their functions in regulating behavior and physiological processes.

Analyze the role of genetic, environmental, and evolutionary factors in shaping behavior.

Explain the concepts of mentalism, materialism, and dualism in the context of psychological thought.

---

Definitions:

Cognitive Consequences

Refers to the outcomes on mental processes such as thinking, memory, and problem-solving due to certain events or experiences.

Health Consequences

The outcomes or results of a particular health condition, lifestyle, or intervention on an individual's well-being.

Recreational Drugs

Substances consumed for their psychoactive effects, typically not for medical purposes or necessity, but for enjoyment or leisure.

Health-Related Risk

The probability of experiencing harm or adverse health effects due to a specific behavior or environmental exposure.