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Cassandra Was Asked at a Party What She Does for a Living

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Cassandra was asked at a party what she does for a living. Shes aid that she is an industrial/organizational psychologist andthat she helps design equipment and develop work procedures that take into consideration human capabilities and limitations. Which subarea of I/O psychology does Cassandra specialize in?


Definitions:

Capital Structure

Refers to the way a corporation finances its assets through a combination of equity, debt, or hybrid securities.

M&M Proposition I

Modigliani and Miller's principle suggesting the irrelevance of financial leverage on a company's valuation in an ideal market.

Debt-Equity Ratio

A calculation of a firm's financial leverage determined by dividing its overall liabilities by the equity of its shareholders.

Interest Tax Shield

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

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