Bellamee, Inc

question 79

Multiple Choice

Bellamee, Inc. has a required rate of return on its assets of 12% and a cost of debt of 6.25%. Its current debt-to-equity ratio is 1/5. What is its required return on equity if its debt-to-equity ratio changes to 2/5 and this increases the required rate of return on its debt to 7%?

• A) 14%
• B) 14.25%
• C) 14.50%
• D) 15%

---

Definitions:

Union Organizing Tactic

Strategies and methods used by labor unions to encourage and assist workers in forming or joining a union to represent their interests.

Gissel Bargaining Order

A legal order issued by the National Labor Relations Board that requires an employer to bargain with a union when majority support has been presumably achieved but undermined by unfair labor practices.

Featherbedding

A labor practice where unions require employers to hire more workers than necessary for a particular task, often to protect jobs.

Single Unionism

A labor relations approach where only one union represents all workers within a workplace or industry, which aims to streamline negotiation processes and reduce inter-union competition.