Question: QUESTION 15 1 points Save Answer An investor is considering starting a new business. The company would require S475,000 of assets, and it would be
QUESTION 15 1 points Save Answer An investor is considering starting a new business. The company would require S475,000 of assets, and it would be financed entirely with common stock. The investor will go forward only if she thinks the firm can provide a 13.5% return on the invested capital, which means that the firm must have an ROE of 13.5%. How much net income must be expected to warrant starting the business? O a. SS4979 Ob.$52,230 O c.$60,919 Od.$64,125 e. $57,873 QUESTION 16 1 points Save Answer Which of the following would indicate an improvement in a company's financial position, holding other things constant? a The current and quick ratios both increase. Ob. The profit margin declines o. The debt ratio increases d. The inventory and total assets turnover ratios both decline. e. The EBITDA coverage ratio declines
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