For the Coming Year,Crane Inc

question 9

Multiple Choice

For the coming year,Crane Inc.is considering two financial plans.Management expects sales to be $301,770,operating costs to be $266,545,assets to be $200,000,and its tax rate to be 35%.Under Plan A it would use 25% debt and 75% common equity.The interest rate on the debt would be 8.8%,but the TIE ratio would have to be kept at 4.00 or more.Under Plan B the maximum debt that met the TIE constraint would be employed.Assuming that sales,operating costs,assets,the interest rate,and the tax rate would all remain constant,by how much would the ROE change in response to the change in the capital structure?

• A) 3.83%
• B) 4.02%
• C) 4.22%
• D) 4.43%
• E) 4.65%

Infer the environment of formation for sediments and rocks from physical characteristics.

Understand the scale and significance of world trade in goods and services.

Recognize the importance and challenges of foreign assignments in career paths.

Comprehend China's role in the global population and its contribution to world exports.

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Definitions:

Amygdala

A region of the brain within the temporal lobe, associated with experiencing emotions, particularly fear and aggression.

Brain

The organ located in the skull responsible for central nervous system functions, including thought, emotion, and sensory processing.

External Attributions

The process of explaining someone's behavior by attributing it to situational factors outside the individual.

Rational Judgments

Decisions or opinions formed based on logic, reason, and factual analysis rather than emotions or intuition.