Exhibit 8-1
USE THE FOLLOWING INFORMATION FOR THE NEXT PROBLEM(S)

question 8

Multiple Choice

Exhibit 8-1
USE THE FOLLOWING INFORMATION FOR THE NEXT PROBLEM(S)
Assume that you are an analyst for the Canadian auto parts industry. Consider the following information that you propose to use to obtain an estimate of year 2010 EPS for the Canadian auto parts industry $\begin{array}{lcc}& \text { Year 2009 } & \text { Estimated Year 2010} \\\hline \text { Personal consumption expenditures } & \$ 6,800 \text {billion } \\\text {Personal consumption expenditures growth } &&1.5 \%\\\text {Industry Sales per share } &\$ 525\\\text { Industry Operating profit margin } &&15 \% \\\text {Industry Depreciation/Fixed Assets } &&8.25 \% \\\text { Industry Fixed asset turnover } &&3 \\\text {Interest rate } &&6 \% \\\text {Industry Total asset turnover } &&1.2 \\\text {Industry Debt/Total assets } &&45 \% \\\text { Industry Tax rate} &&36 \%\end{array}$
In addition a regression analysis indicates the following relationship between growth in industry sales per share and personal consumption expenditures (PCE) growth is
%D Sales per share = 0.02 + 1.5(%D PCE)
-Refer to Exhibit 8-1. Calculate the per share interest rate charge for the year 2010.

• A) $12.93
• B) $17.72
• C) $10.07
• D) $13.76
• E) $18.59

Identify the sources of cash in short-term financial management.

Understand the difference between fluid and crystallized intelligence, including how each type changes with age.

Recognize various theories of intelligence and the theorists associated with them, such as Gardner's multiple intelligences, Spearman's g factor, and Thurstone's theory of primary mental abilities.

Identify the cognitive processes approach to intelligence and its focus on mental abilities underlying intelligent behavior.

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Definitions:

Interest-Rate Cost

The cost incurred by an individual or entity due to borrowing funds, determined by the rate of interest on the borrowed amount.

Marginal Utility

The additional enjoyment or gain achieved by consuming another unit of a good or service.

Total Utility

The total satisfaction or benefit derived from consuming a given quantity of goods or services.

Budget

An estimate of income and expenditure for a set period of time, often used by governments, businesses, and individuals to allocate resources.