Use the Following Information to Answer the Question(s)below

question 24

Multiple Choice

Use the following information to answer the question(s) below.
Nielson Motors has a debt-equity ratio of 1.8,an equity beta of 1.6,and a debt beta of 0.20.It is currently evaluating the following projects,none of which would change Nielson's volatility. (All amounts are in $millions. )
-Nielson Motors should accept those projects with profitability ratios greater than:

• A)0.15
• B)0.175
• C)0.20
• D)0.225

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Definitions:

Cost of Goods Sold

An accounting term for the direct costs attributable to the production of the goods sold in a company, including both raw materials and labor expenses.

Aggregate Planning

Strategic planning of overall output levels and resources to effectively meet demand over a period, typically months, considering various constraints and objectives.

Efficiency

The ability to achieve a goal or perform a task with the minimum expenditure of time and resources.

Effectiveness

The degree to which something is successful in producing a desired or intended result.