Which of the Following Criteria Would Be Determinants of the Appropriate

question 92

Multiple Choice

Which of the following criteria would be determinants of the appropriate ratio of debt to equity if a company should not take on more debt than can be serviced under conservative economic forecasts?
i.Maximisation of shareholder wealth
ii.Industry norms
iii.History of the ratio for the firm
iv.The stage of the current economic cycle
v.Limit imposed by lenders
vi.The company's capacity to service debt

• A) i, iii, v, vi
• B) ii, iii, v, vi
• C) ii, iii, iv, v
• D) iii, iv, v, vi

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Definitions:

S-Cam Brakes

Drum brake system in which the shoes are driven into the drum by rotating an S-shaped cam, spreading the shoes.

Service Brake Torque

The amount of torque applied by the service brake system to slow or stop a vehicle, typically measured at the wheels.

Brake Treadle Valve

A valve operated by a pedal that controls the flow of air or hydraulic fluid to the brakes.

Air Brake Treadle Valve

A valve controlled by the foot pedal in air brake systems, regulating air pressure sent to the brakes to slow down or stop the vehicle.