The screening of information to form perceptions is known as _____

Peter, proprietor of Peter's Easy Loan Company, loaned Jessie $4,000 on December 1, 2015 . The loan is to be repaid on December 1, 2016, along with $600 interest. On July 10, 2016, Peter learns that Jessie has filed for personal bankruptcy and that non-secured creditors will receive only $0.60 on the dollar. Peter actually receives nothing until February 24, 2017 . On that date, Peter receives a

check for $1,000 from Jessie's bankruptcy proceedings in final settlement of the loan. How should Peter account for the loan to Jessie? a. $1,600 short-term capital loss in 2016; and $1,400 short-term capital loss in 2017. b. $3,000 ordinary loss in 2016. c. $2,400 ordinary loss in 2016. d. $1,600 ordinary loss in 2016; and $1,400 ordinary loss in 2017. e. $3,000 short-term capital loss in 2017.

Copybold Corporation Copybold Corporation is a start-up firm considering two alternative capital structures?one is conservative and the other aggressive. The conservative capital structure calls for a D/A ratio = 0.25, while the aggressive strategy call for D/A = 0.75. Once the firm selects its target capital structure it envisions two possible scenarios for its operations: Feast or Famine

The Feast scenario has a 60 percent probability of occurring and forecast EBIT in this state is $60,000. The Famine state has a 40 percent chance of occurring and the EBIT is expected to be $20,000. Further, if the firm selects the conservative capital structure its cost of debt will be 10 percent, while with the aggressive capital structure its debt cost will be 12 percent. The firm will have $400,000 in total assets, it will face a 40 percent marginal tax rate, and the book value of equity per share under either scenario is $10.00 per share. Refer to Copybold Corporation. What is the coefficient of variation of expected EPS under the aggressive capital structure plan? A) 1.00 B) 1.18 C) 2.45 D) 2.88 E) 3.76