Outflung Computers Has $1,000 in Revenue This Year, Along with COGS

question 22

Multiple Choice

Outflung Computers has $1,000 in revenue this year, along with COGS of $400 and SG&A of $100. The required rate of return on its equity is 14%, and the risk-free rate is 5%. Assume that the COGS only includes the marginal costs of selling a computer. Banana is considering adding $700 worth of debt with a coupon rate of 5% and a YTM of 7.9% to its capital structure. M&M Proposition 2: Suppose revenues fall by $300. What is the per cent change in profit with and without the debt? Assume that the total variable productions costs remain the same.

• A) 64.5%, 60%
• B) 60%, 64.5%
• C) 59.2%, 40.8%
• D) 40.8%, 59.2%

Recognize the difference between intrinsic and extrinsic motivation and their effects on behavior.

Acknowledge the influence of culture and social factors on intelligence testing and performance.

Learn about environmental influences on IQ scores.

Understand the role of memory and stereotypes in affecting the performance of elderly individuals.

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Definitions:

Checking Rituals

Repetitive behaviors or mental acts that a person feels compelled to perform, often associated with obsessive-compulsive disorder, aimed at reducing anxiety or preventing a feared event.

Trust

Confidence in the reliability, truth, ability, or strength of someone or something, often considered essential for social cohesion and personal relationships.

Memory

The faculty by which the mind stores and remembers information, enabling learning and retention of experiences.

Automatic Reflex

An automatic reflex is an involuntary and nearly instantaneous movement in response to a stimulus, not requiring conscious thought.