Use the Table for the Question(s) Below

question 65

Multiple Choice

Use the table for the question(s) below.

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Consider the above balance sheet for your firm (in thousands of dollars) .You plan on acquiring some new equipment using a $950,000 finance lease.If you go through with the lease,what will be the change in your firm's debt-equity ratio?

• A) 0.44
• B) 0.20
• C) 0
• D) 0.58
• E) 0.38

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Definitions:

Self-Fulfilling Prophecy

A situation where an individual's expectations or the expectations of others lead to behaviors that cause those expectations to come true.

Ingroup/Outgroup Bias

The tendency to favor members of one's own group (the ingroup) over those in other groups (the outgroup), often leading to prejudice and discrimination.

Self-Fulfilling Prophecy

A belief or expectation that influences behavior in a way that causes the belief to become true.

Stereotyping

Involves assigning a set of characteristics to people based on their membership in a particular group or category, often leading to oversimplified and unfair judgments.