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The board of directors is dissatisfied with last year's ROE of 15%. If the profit margin and asset turnover remain unchanged at 8% and 1.25, respectively, by how much must the total debt ratio increase to achieve 20% ROE?
Strong Generalization
A statement about all members of a group or category that is made on the basis of evidence for some members, assuming it applies universally with little to no exceptions.
Single Instance
A reference to an argument or conclusion drawn from one example or case, which may not be sufficiently representative.
Representative
An individual who acts on behalf of others, typically in a legislative or formal setting, or a sample that accurately reflects the characteristics of a larger group.
Induction
A method of reasoning that moves from specific instances to form general conclusions or theories.
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