Holland Identified Four Constructs That Describe the Relationships Among Types

question 13

Essay

Holland identified four constructs that describe the relationships among types within people or environments and between people and environments.Identify these four constructs, briefly describe them, and indicate how they are useful in making predictions.

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Definitions:

Target Capital Structure

The ideal mix of debt, equity, and other financing sources a company aims to maintain to fund its operations and growth.

Optimal Capital Structure

The most favorable mix of debt and equity financing that minimizes the company's cost of capital and maximizes its value.

EPS

Earnings Per Share, a financial metric used to indicate the profitability of a company on a per-share basis.

Net Income

The total profit of a company after all expenses and taxes have been deducted from revenue.