TLCEnterprises Just Revised Its Capital Structure from a Debt-Equity Ratio

question 16

Multiple Choice

T.L.C.Enterprises just revised its capital structure from a debt-equity ratio of .37 to a debt-equity ratio of .48.The firm's shareholders who prefer the old capital structure should:

• A)sell some shares and hold the sale proceeds in cash.
• B)sell all of their shares and loan out the entire sale proceeds.
• C)do nothing.
• D)sell some shares and loan out the sale proceeds.
• E)borrow funds and purchase more shares.

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Definitions:

Seriation

The cognitive ability to arrange objects in order according to size, shape, or any other characteristic.

Decentration

The ability to focus on multiple attributes of an object or situation rather than being locked onto a single aspect.

Mainstreaming

The practice of integrating children with disabilities or special needs into regular educational settings.

Mildly Disabled

Describes individuals with disabilities that moderately affect their daily activities or abilities but can often manage with minimal accommodations.