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:

F.O.B. Seattle

A commercial term indicating that the seller of goods is responsible for them until they are loaded on board a shipping vessel in Seattle, at which point the buyer assumes risk and responsibility.

Shipment Contract

A type of agreement in sales law where the seller is responsible for delivering goods to a carrier, after which the risk of loss passes to the buyer.

Entrusted

Given over to another's care or protection, often relating to property or duties.

Merchant

An individual or company engaged in the trade of goods, services, or commodities for profit.