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NEW QUESTION: 1
If a firm's asset turnover were to increase by 10% and the tax rate were to increase from 35% to 40%, leaving all else constant, the resultant change in the firm's ROE equals ________.
A. -1.1%
B. +1.5%
C. -1.9%
Answer: B
Explanation:
ROE = Net income/Equity. Using the Extended DuPont System, = (EBT/sales)*(sales/total assets)*(total assets/equity)*(1-tax rate) The asset turnover ratio equals sales/total assets. Therefore,
ROE(after)/ROE(before) = [asset turnover(after)/asset turnover(before)*]*[0.6/0.65] = 1.1*0.6/0.65 = 1.015.
Thus, the ROE increases by 1.5%.

NEW QUESTION: 2
선제 적 권리를 가진 보통 주주들은 :
A. 연례 회의에서 먼저 투표하십시오.
B. 기업이 판매 한 추가 주식을 구입하십시오.
C. 대리 싸움에서 실체를 통제하십시오.
D. 회사가 판매 한 추가 채권을 구매하십시오.
Answer: B
Explanation:
Preemptive rights protect ordinary shareholders, proportional ownership interests from dilution in value. A secondary purpose is to maintain the shareholders' control of the entity. Accordingly, the preemptive right, whether granted by statute or by the corporate charter, grants ordinary shareholders the power to acquire on a pro rata basis any additional ordinary shares sold by the entity. Preemptive rights also apply to debt convertible into ordinary shares.

NEW QUESTION: 3
-- Exhibit -
Making a Budget
(A)
A. replace principles.with principals.
B. change Making to Having made
C. replace no with know
D. Making a budget is very easy if you no the basic procedure and a few principles.B.First, writing down all your income for one month.C.Income, including your paycheck or other checks from Social Security and the government, means all the money you receive.D.Next, figure out all your regular monthly expenses.E.Rent and utilities are important regular expenses; you should also include expenses for food and medicine you take regularly.(6) You must not forget because they add up, the smaller monthly bills such as payments for credit cards, interest on loans, and insurance.
(B)
(7)
You also should keep track of minor daily expenses because you probably spend more on them than you realize.(8) These includes purchases of such things as sodas, snacks, newspapers, magazines, and candy.(9) Add them up for a week and then multiply the weekly total by the number of weeks in the month to determine the total monthly cost.(10) Transportation costs, such as bus and subway fairs along with gasoline and tolls, should also be calculated as monthly expenses.
(C)
(11)
Finally, it's important to plan as much as possible for special expenses, such as visits to doctors and dentists and repairs to your home or car.(12) Gifts for such events as Christmas and birthdays are other kinds of expenses you can plan for certain months.(13) Other activities, such as celebrating a holiday or taking a vacation, often demand extra spending, too.(14) Some months may also require you according to the season to buy new clothes.(15) By preparing a budget in all these areas, you can figure out how much money you need for each month, this will help you watch your spending and may help you to save for the future. -- Exhibit -Sentence Making a budget is very easy if you no the basic procedure and a few principles. Which correction should be made to sentence 1?
E. change is to was
F. insert a comma after if
Answer: F