Red Corphas a Rate of Return on Assets of 10% and and a Debt

question 90

Short Answer

Red Corp.has a rate of return on assets of 10% and a debt to equity ratio of 2 to 1.Not including any indirect effects on earnings,the immediate impact of retiring debt on these ratios is a(n)

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Definitions:

Uncertainty

The state of having limited knowledge where it is impossible to exactly describe the existing state, a future outcome, or more than one possible outcome.

Fairness

The impartial and just treatment without favoritism or discrimination; in economics, often related to equitable distribution of resources and opportunities.

Behavioral Economics

A field of study that analyzes the effects of psychological, cognitive, emotional, cultural, and social factors on the economic decisions of individuals and institutions.

Supermarket Strategies

Marketing and management tactics used by supermarkets and retail stores to increase sales, customer satisfaction, and market share.