Which of the Following Actions Would Necessarily Result in a Lower

question 61

Multiple Choice

Which of the following actions would necessarily result in a lower debt-equity ratio, all else equal?

• A)The firm uses its excess cash to repurchase some of its shares of common stock.
• B)Warrant owners exercise their warrants.
• C)The firm pays a special dividend to its shareholders.
• D)All of the above would lower the debt-equity ratio of the firm.

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Definitions:

Research Design

The overall strategy that outlines how to conduct research, defining how data is collected, measured, and analyzed.

Double-Blind Procedure

A research design in which neither the participants nor the experimenters know who is receiving the treatment or the placebo, to prevent bias.

Experimenter Bias Effects

The influence that a researcher's expectations or preferences may have on the outcome of an experiment.

Socially Desirable Procedure

An approach or method deemed acceptable and appealing by societal standards or expectations, often used in psychological research to ensure participants' comfort and cooperation.