What Three Factors Are Important to Consider in Determining a Target

question 2

Multiple Choice

What three factors are important to consider in determining a target debt to equity ratio?

• A) Taxes, asset types, and pecking order and financial slack
• B) Asset types, uncertainty of operating income, and pecking order and financial slack
• C) Taxes, financial slack and pecking order, and uncertainty of operating income
• D) Taxes, asset types, and uncertainty of operating income
• E) None of these.

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Definitions:

Attributions

The process by which individuals explain the causes of behavior and events, often as either internal dispositions or external situations.

Conformity

The act of matching attitudes, beliefs, and behaviors to group norms or societal standards.

Compliance

Changing one’s behavior as a result of other people directing or asking for the change.

Conformity

The act of matching attitudes, beliefs, and behaviors to group norms or standards.