The Five Steps for Critical Thinking Work Best When Applied

question 33

Multiple Choice

The five steps for critical thinking work best when applied to

• A) math and science courses.
• B) courses in the social sciences.
• C) courses in the arts.
• D) all of your academic experiences in college.

---

Definitions:

Capital Structure

The mix of debt and equity financing a company uses to fund its operations and growth.

M&M Proposition II

Modigliani and Miller's Proposition II states that a company's cost of equity increases as it increases its leverage due to the risk premium on equity.

Debt-Equity Ratio

A financial ratio that measures the relative proportion of shareholders' equity and debt used to finance a company's assets.

Financial Risk

The chance of incurring a loss in capital in an investment or business operation.