Which of the Following Strategies May Be Used to Alter

question 4

Multiple Choice

Which of the following strategies may be used to alter a firm's capital structure toward a higher percentage of debt compared to equity?

• A) stock dividend
• B) stock split
• C) maintain a low dividend payout ratio
• D) stock repurchase

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Definitions:

Social Norms

Accepted behaviors that are considered typical within a group or society, guiding interactions and expectations.

Cognitive Dissonance Theory

A theory suggesting that people experience discomfort (dissonance) when their beliefs or behaviors are inconsistent with one another, often leading to changes to reduce the dissonance.

Philip Zimbardo

Philip Zimbardo is a psychologist well-known for his 1971 Stanford prison experiment which highlighted the impact of situational forces on human behavior.

Reliability

The consistency and dependability of a measurement tool or test over time, ensuring that the same results can be repeated under similar conditions.