A Firm Has Assets of $250 Million,of Which $25 Million

question 67

Multiple Choice

A firm has assets of $250 million,of which $25 million is cash.It has debt of $100 million.If the firm were to repurchase $10 million of its stock,what would its new debt-to-equity ratio be?

• A)71.4%
• B)28.6%
• C)80%
• D)20%

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Definitions:

Leadership Decision Tree

A graphical representation used by leaders to make decisions by mapping out different courses of action and their potential outcomes.

Work Decisions

Choices or judgments made in a professional setting that affect job responsibilities and outcomes.

Transformational Leadership

A style of leadership where the leader works with teams to identify needed change, creating a vision to guide the change through inspiration, and executing the change in tandem with committed members of the group.

Individualized Consideration

involves tailoring leadership styles or approaches to meet the unique needs and abilities of each member of a group or organization.