Based on the Information in Exhibit 2, Grupa Zywiec SA's

question 27

Multiple Choice

based on the information in Exhibit 2, Grupa Zywiec SA's credit risk is most likely: ExHibiT 2 European Food, beverage, and Tobacco industry and Grupa Zywiec SA Selected Financial Ratios for 2010
$\begin{array} { l c c c c c } & \begin{array} { c } \text { Total } \\\text { debt/Total } \\\text { capital } \\( \% ) \end{array} & \begin{array} { c } \text { FFO/Total } \\\text { debt } \\( \% ) \end{array} & \begin{array} { c } \text { Return on } \\\text { capital } \\( \% ) \end{array} & \begin{array} { c } \text { Total debt/ } \\\text { EBITDA } \\( \mathrm { x } ) \end{array} & \begin{array} { c } \text { EBITDA } \\\text { interest } \\\text { coverage } \\( \mathrm { x } ) \end{array} \\\hline \text { Grupa Zywiec SA } & 47.1 & 77.5 & 19.6 & 1.2 & 17.7 \\\text { Industry Median } & \mathbf { 4 2 . 4 } & \mathbf { 2 3 . 6 } & \mathbf { 6 . 5 5 } & \mathbf { 2 . 8 5 } & \mathbf { 6 . 4 5 } \\\hline\end{array}$

• A) lower than the industry.
• B) higher than the industry.
• C) the same as the industry.

---

Definitions:

Fundamental Attribution Error

The tendency to overestimate personality or dispositional factors and underestimate situational influences when explaining the behavior of others.

Slacking Off

The act of reducing effort or avoiding work altogether.

Cognitive Dissonance

The psychological distress felt when an individual has two or more opposing beliefs, ideas, or values at the same moment.

Attribution Theory

The theory that we explain someone’s behavior by crediting either the situation or the person’s disposition.