A Firm Has an Operating Profit of $300,000, Interest of $35,000

question 70

Multiple Choice

A firm has an operating profit of $300,000, interest of $35,000, and a tax rate of 40 percent. The firm has an after-tax cost of debt of 5 percent and a cost of equity of 15 percent. The firm's target capital structure is set at a mix of 40 percent debt and 60 percent equity. According to the traditional approach to capital structure, the value of the firm is

• A) $1.4 million.
• B) $2.0 million.
• C) $2.7 million.
• D) $6.0 million.

Acknowledge the physiological and psychological factors influencing motives.

Recognize the impact of environment and innate predispositions on behavior.

Understand the influence of stimulus-seeking behavior on human actions.

Understand the basic principles of motivation and how they apply to human behavior.

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Definitions:

Material Culture

The physical objects, resources, and spaces that people use to define their culture, including buildings, tools, and artifacts.

Culture

The set of shared attitudes, values, goals, and practices that characterizes an institution, organization, or group.

Linguistic Relativity

The hypothesis that the structure of a language affects its speakers' world view or cognition, and thus people's perceptions are relative to their spoken language.

Linguists

Specialists in the study of language, including its structure, development, and relationship among languages.