Use the Table for the Question(s)below

question 83

Multiple Choice

Use the table for the question(s) below.
Consider the following balance sheet:

-Luther Corporation's share price is $39 and the company has 20 million shares outstanding. Its Debt -Capital Ratio for 2012 is closest to:

• A)0.696
• B)0.37
• C)1.89
• D)0.654

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Definitions:

Groupthink

A psychological phenomenon that occurs within a group of people, where the desire for harmony or conformity results in an irrational or dysfunctional decision-making outcome.

Risky Shift

Tendency for group discussion to produce group decisions that are more risky than the mean of members’ pre-discussion opinions, but only if the pre-discussion mean already favoured risk.

Pre-Discussion

A phase prior to formal discussions where initial opinions or subjects may be informally exchanged.

Groupthink

A psychological phenomenon where the desire for harmony and conformity in a group leads to irrational and dysfunctional decision-making outcomes.