What Three Factors Are Important to Consider in Determining a Target

question 3

Multiple Choice

What three factors are important to consider in determining a target debt to equity ratio?

• A)Taxes, asset types, and pecking order and financial slack
• B)Asset types, uncertainty of operating income, and pecking order and financial slack
• C)Taxes, financial slack and pecking order, and uncertainty of operating income
• D)Taxes, asset types, and uncertainty of operating income
• E)None of the above.

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Definitions:

Lancet

A small, sharp, and typically pointed surgical instrument used for making small incisions or punctures.

Semipermeable

Describes a barrier or membrane that allows certain substances to pass through it while blocking others.

Cell Wall

A rigid layer outside the plasma membrane of the cells of plants, fungi, and some bacteria, providing structural support and protection.

Plasma Membrane

The lipid bilayer that surrounds a cell, controlling the movement of substances in and out of the cell.