Your Text Reports a Study by Karremans Et Al

question 155

Multiple Choice

Your text reports a study by Karremans et al. (2006) in which students viewed letter strings on a screen. The strings were preceded either by the name of a popular beverage, or a nonsense anagram containing the same letters as the beverage's name. These stimuli were presented too quickly for the students to see them. Later, participants were asked if they would order the beverage at a café. What was the independent variable in the study What was the main result of the study

• A)The independent variable was the stimulus preceding the letter string.Participants exposed to the name of the beverage were more likely to say they would order it than were participants exposed to nonsense anagrams.
• B)The independent variable was the likelihood that participants would order the drink.Participants exposed to the name of the beverage were more likely to say they would order it than were participants exposed to nonsense anagrams.
• C)The independent variable was the stimulus preceding the letter string.Participants exposed to the name of the beverage were no more likely to say they would order it than were participants exposed to nonsense anagrams.
• D)The independent variable was the stimulus preceding the letter string.Participants exposed to the name of the beverage were less likely to say they would order it than were participants exposed to nonsense anagrams.

---

Definitions:

ROE

Return On Equity represents a financial performance metric that is obtained by dividing a company's net income by its shareholders' equity, demonstrating the company's effectiveness in using investor funds to grow earnings.

EPS

Earnings Per Share, a key indicator of a company's profitability, calculated by dividing the company's net income by its total number of outstanding shares.

DFL

Degree of Financial Leverage, a ratio measuring the sensitivity of a company's earnings per share to fluctuations in its operating income, due to changes in its capital structure.

Optimal Capital Structure

The most favorable blend of debt and equity financing that minimizes a company's cost of capital while maximizing its market value.