Section C (4 Mark)
You are considering adding a new product to your firm's existing product line. It should cause a 15 percent increase in your profit margin (i.e., new PM = old PM x 1.15), but it will also require a 50 percent increase in total assets (i.e., new TA = old TA x 1.5). You expect to finance this asset growth entirely by debt. If the following ratios were computed before the change, what will be the new ROE if the new product is added and sales remain constant?
Section A (1 Mark)
Which one of the following has not caused the huge growth in hedge funds and private equity?
Section A (1 Mark)
Who would get the first preference when the property of a deceased person is to be distributed?
Section C (4 Mark)
Which of the following statements is/are correct?
TESTED 16 Apr 2024
