TLCEnterprises Just Revised Its Capital Structure from a Debt-Equity Ratio

question 6

Multiple Choice

T.L.C.Enterprises just revised its capital structure from a debt-equity ratio of 0.30 to a debt-equity ratio of 0.45.The firm's shareholders who prefer the old capital structure should:

• A)sell some shares and hold the sale proceeds in cash.
• B)sell all of their shares and loan out the entire sale proceeds.
• C)do nothing.
• D)sell some shares and loan out the sale proceeds.
• E)borrow funds and purchase more shares.

Know the assumptions and conditions specific to the sign test and the Wilcoxon tests, such as sample size requirements and data types.

Differentiate between the various nonparametric tests used for hypothesis testing, including their applications and limitations.

Understand and identify the scenarios where the Wilcoxon rank sum test and Wilcoxon signed rank sum test are appropriately applied.

Comprehend the calculation and interpretation of ranks in nonparametric tests.

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Definitions:

USB Port

A standard cable connection interface on computers and electronic devices for data transfer and power supply.

Ethernet

A technology for networking that enables devices to communicate with each other by transmitting data over cables.

FireWire

FireWire is a serial bus interface standard for high-speed communication and data transfer, often used for connecting digital video cameras and external hard drives to a computer.