FIN 534 RANK Change The World /fin534rank.com FIN 534 RANK Change The World /fin534rank.com | Page 50

or more. Under Plan B the maximum debt that met the TIE constraint
would be employed. Assuming that sales, operating costs, assets, the
interest rate, and the tax rate would all remain constant, by how much
would the ROE change in response to the change in the capital
structure?
a. 3.83%
b. 4.02%
c. 4.22%
d. 4.43%
e. 4.65%
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FIN 534 Week 2 DQ 1
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Week 2 discussion 1
Assume you are deciding whether or not to invest in a particular
company. Discuss which elements of which financial statements you
would want to carefully examine. Explain your rationale.
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FIN 534 Week 2 DQ 2