Studies of Capital Structure Changes Have Found That Actions That

question 40

Multiple Choice

Studies of capital structure changes have found that actions that increase leverage have generally been associated with ____ stock returns and actions that decrease leverage are associated with ____ stock returns.

• A) negative; positive
• B) negative; no change in
• C) positive; negative
• D) no change in; negative

---

Definitions:

Retroactive Interference

The process by which newly learned information makes it harder to recall information that was learned earlier.

Massed Practice

A learning strategy that involves intensive, continuous sessions of practice or study with little to no rest between sessions.

Distributed Practice

A learning strategy that involves spreading study sessions out over time, which has been shown to improve retention of information compared to massed practice (cramming).

Three Hours

A period of time equivalent to 180 minutes.