Ruth Was Convicted of Five Separate Counts of Fraud

question 26

Multiple Choice

Ruth was convicted of five separate counts of fraud.She had used her charm to persuade elderly pensioners to sign their life savings over to her.She confessed to the crimes,but she showed no remorse for her actions.She even bragged at the trial that she would do it all again when she had the chance.In this case,Ruth's behavior is consistent with that seen in

• A) narcissistic personality disorder.
• B) bipolar disorder.
• C) avoidant personality disorder.
• D) antisocial personality disorder.

---

Definitions:

Interest Tax Shield

The reduction in income taxes that results from the deductibility of interest expense from taxable income.

Capital Structure

The mix of debt and equity financing a company uses for its operations and growth.

Optimal Capital Structure

Optimal capital structure is the mix of debt, equity, and other financing sources that minimizes a firm's cost of capital and maximizes shareholder value, balancing risk and return.

Financial Distress

A situation where a company cannot meet or has difficulty paying off its financial obligations to creditors, often leading to bankruptcy or restructuring.