Grindle Ltd Has Total Assets of $1

question 5

Multiple Choice

Grindle Ltd has total assets of $1.5 million and liabilities of $0.9 million before it issues $300,000 in preference shares.What is the debt to asset ratio assuming that the preference shares have no voting rights and offer a fixed dividend rate of 10 per cent and (a) are redeemable at the discretion of the issuer and (b) have a scheduled date for mandatory redemption?

• A) (a) 60 per cent (b) 80 per cent
• B) (a) 50 per cent (b) 67 per cent
• C) (a) 80 per cent (b) 60 per cent
• D) (a) 67 per cent (b) 50 per cent
• E) None of the given answers.

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Definitions:

Inhibition

Refers to the psychological process through which certain behaviors or responses are suppressed.

Respondent Behavior

A behavioral process (also known as the conditioned response) that occurs in reaction to a specific stimulus without conscious intention.

Physiological Processes

The natural biological activities and functions occurring within the body's systems and organs.

Skinner

B.F. Skinner, an influential psychologist known for his work on behaviorism and the development of the operant conditioning theory.