Answer: c. earns a higher return than the rate paid on debt.
Explanation:
If the debt that the company incurs leads to the company making more money than they are paying as interest for the debt, then more money will be available as net income which would increase the Return on Equity.
ROE is calculated by dividing the Net Income by Shareholder equity. Interest is an expense. If this expense is lower then the increase in net income as a result of the debt then it follows that net income would increase and so would ROE.
Can you give a better explanation
1) Know the complaint. Ask what they think is the best solution to resolve the problem. Weigh the pros and cons of their suggestions. If more pros than cons, implement their suggestions. If more cons than pros, ask them to suggest other ways of solving their complaints.
2) Narrow down the choices. Give them shorter time to think and hold them to their decision.
3) Let them share their expertise with others.
4) Let them share their ideas more. Let them be more involve in team activities so that they will feel that they belong.
5) Give them projects that they can kickstart. That way they will have a way to channel their aggressiveness. Let them be part of team building activities to help them adjust with other people's personalities.
Answer: b.the principles of management are much the same at large and small firms.
Explanation:
Quinn will find that Management Principles do not discriminate against different sizes of firms and that the principles that work in one size can work across ALL sizes.
She will find that the same Principles that helped her in her big NGO will help her JUST AS WELL in this small but pioneering business.
Answer:
b. 14.0%
Explanation:
NET INCOME
Sales $ 100.000
Net Income $ 25.000
Preferred Stock -$ 4.000
Net Income to Stockholders' equity—common $ 21.000 14%
Net Income to Stockholders $ 21.000
=========== = 14%
Stockholders' equity—common $ 150,000