Use the Information for the Question(s)below

question 92

Essay

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.
-Show mathematically that the stock price of RC won't change following the debt issuance and share repurchase.

Comprehend how personality traits influence preferences and perceptions.

Identify the role of factor analysis in personality psychology and its outcomes.

Understand the relationship between personality traits and political attitudes.

Recognize the concept of ego resiliency and ego control in the context of psychological theory.

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Definitions:

Organizational Politics

The behavior in workplaces that involves tactics of power and influence to achieve personal or organizational gain.

Pyramid-shaped Organization

An organizational structure that is characterized by a broad base of lower-level employees and a narrowing chain of command up to the top leadership.

Organizational Politics

Involves the use of power, influence, and strategic maneuvers within an organization to achieve personal or group goals, often at the expense of others or the organization itself.

Powerful Positions

Roles or titles within an organization or society that come with a significant amount of influence or authority.