Which of the Following Is an Indication of a Firm's

question 58

Multiple Choice

Which of the following is an indication of a firm's risk with its capital structure?

• A) Indifference point
• B) Coefficient of variation
• C) Earnings per share
• D) Net operating income
• E) Weighted average cost of capital

---

Definitions:

Per Se Violation

An action that is inherently illegal under antitrust laws, without needing to prove its harm on competition.

Price-fixing

The practice where businesses conspire to establish prices at a certain level, rather than letting them be determined by free-market forces.

Herfindahl Index

A measure of market concentration that is calculated by squaring the market share of each firm competing in a market and then summing the resulting numbers.

Economic Concentration

The degree to which a small number of firms occupy a large proportion of the market in a particular industry.