The term ________ refers to a document required to be filed by a creditor that states the amount of his or her claim against the debtor.

A. proof of claim
B. voluntary petition
C. proof of interest
D. discharge of debt


Answer: A

Business

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What will be an ideal response?

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Last year Hamdi Corp. had sales of $500,000, operating costs of $450,000, and year-end assets (which is equal to its total invested capital) of $385,000. The debt-to-total-capital ratio was 17%, the interest rate on the debt was 7.5%, and the firm's tax rate was 35%. The new CFO wants to see how the ROE would have been affected if the firm had used a 50% debt-to-total-capital ratio. Assume that sales, operating costs, total assets, total invested capital, and the tax rate would not be affected, but the interest rate would rise to 8.0%. By how much would the ROE change in response to the change in the capital structure? Do not round your intermediate calculations.

A. 2.08% B. 2.46% C. 2.01% D. 2.51% E. 2.64%

Business