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Answer: A
NEW QUESTION: 2
The nurse is assessing a client who, admitted due to difficulty breathing, underwent a bronchoscopy. On assessment, the nurse notes absence of the gag reflex. Which of the following interventions is the least appropriate for the client?
A. Withhold oral medications
B. Limit oral fluid intake to 1000 mL per day
C. Re-assess the client's gag reflex in 2 hours
D. Assist the client in upright position
Answer: B
Explanation:
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NEW QUESTION: 3
Which of the following is the MOST important consideration before making a change to a server?
A. Review the equipment disposal procedures and policies before implementation.
B. Explore the ramification of the change before implementation.
C. Determine the service level agreement in place before implementation.
D. Notify all staff members of the planned system outage before implementation.
Answer: B
NEW QUESTION: 4
TCH Corporation is considering two alternative capital structures with the following characteristics.
AB
Debt/Assets ratio0.30.7
kd10%14%
The firm will have total assets of $500,000, a tax rate of 40 percent, and book value per share of $10, regardless of capital structure. EBIT is expected to be $200,000 for the coming year. What is the difference in earnings per share (EPS) between the two alternatives?
A. $1.19
B. $7.62
C. $3.03
D. $2.87
E. $4.78
Answer: D
Explanation:
Explanation/Reference:
Explanation:
Capital structure A: The firm will have debt of $500,000(0.3) = $150,000 and equity of $350,000. We're told the shares have a book value of $10 so the number of shares outstanding is $350,000/$10 = 35,000.
Interest expense will be $150,000(10%) = $15,000. We can compute EBT as EBIT - I or $200,000 -
$15,000 = $185,000. Also, we can compute NI as EBT(1 - T) or $185,000(1 - 0.4) = $111,000. Finally, EPS
= $111,000/35,000 = $3.17. Capital structure B: The firm will have debt of $500,000(0.7) = $350,000 and equity of $150,000. The number of shares outstanding is $150,000/$10 = 15,000. Interest expense will be
$350,000(14%) = $49,000. We can compute EBT as $200,000 - $49,000 = $151,000. Also, we can compute NI as $151,000 (1 - 0.4) = $90,600. Finally, EPS = $90,600/15,000 = $6.04. The difference in EPS between capital structure A and capital structure B is $6.04 - $3.17 = $2.87.
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