Use the Information for the Question(s) Below

question 3

Multiple Choice

Use the information for the question(s) below.
Assume that Rose Corporation's (RC) EBIT is not expected to grow in the future and that all earnings are paid out as dividends. RC is currently an all equity firm. It expects to generate earnings before interest and taxes (EBIT) of $6 million over the next year. Currently RC has 5 million shares outstanding and its stock is trading for a price of $12.00 per share. RC is considering borrowing $12 million at a rate of 6% and using the proceeds to repurchase shares at the current price of $12.00.
-Following the borrowing of $12 million and the subsequent share repurchase,the value of a share for RC is closest to:

• A) $14.00
• B) $13.20
• C) $12.00
• D) $10.80

Recognize the effectiveness of diverse motivational practices based on empirical evidence.

Understand the limitations of using a single motivator in motivational systems.

Identify the factors an organization must consider when implementing motivational practices.

Acknowledge the effectiveness of using a variety of motivators in motivational systems.

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Definitions:

Unethical

Actions or behavior that violate moral or professional principles, often involving dishonesty, harm, or unfair treatment.

Company Supplies

Materials and goods provided by an organization for its employees to perform their jobs.

Strong Work Ethic

A set of values centered on the importance of hard work and diligence, reflecting an individual's commitment to effectively performing job tasks.

Gen Y

Also known as Millennials, this demographic cohort follows Generation X and is characterized by their birth years ranging from the early 1980s to the mid-1990s to early 2000s.