Consider Two Firms That Are Identical in Every Way Except

question 38

Multiple Choice

Consider two firms that are identical in every way except that one has $15,000 of debt and 500 shares of stock outstanding,while the other is all-equity and has 650 shares of stock outstanding.Assume that the debt is a perpetuity with annual coupons at the rate of 6%.What is each firms' earnings per share if EBIT is $7,500? Assume a tax rate of 40%.

• A) EPS_L = 7.92; EPS_E = 7.92
• B) EPS_L = 6.92; EPS_E = 7.92
• C) EPS_L = 6.92; EPS_E = 6.92
• D) EPS_L = 7.92; EPS_E = 6.92
• E) EPS_L = 8.92; EPS_E = 6.92

Explain the reasons behind the absence of certain splittings in NMR spectra.

Comprehend and describe the functional group effects on NMR chemical shifts.

Recognize the limitations and capabilities of NMR spectroscopy in detecting dynamic processes.

Demonstrate the ability to use NMR spectroscopy as a tool to investigate molecular dynamics and confirm the presence of specific atoms or functional groups.

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Definitions:

Management by Exemption

A management style where leaders only intervene when standards are not met or when there are deviations from expected performance

Task-specific Self-efficacy

An individual’s internal expectancy to perform a specific task effectively.

Persuasion

The act or process of influencing someone's beliefs, attitudes, intentions, motivations, or behaviors through arguments, reasoning, or appeal.

Negative Consequences

Undesirable outcomes or penalties that result from a specific behavior or action, often serving as a deterrent for the behavior.