What Four Factors Are Important to Consider in Determining a Target

question 32

Multiple Choice

What four factors are important to consider in determining a target debt to equity ratio.

• A) taxes, asset types, pecking order and financial slack and debt capacity.
• B) asset types, uncertainty of operating income, operating capacity, and pecking order and financial slack.
• C) taxes, financial slack and pecking order, debt capacity and uncertainty of operating income.
• D) taxes, asset types, pecking order and financial slack and uncertainty of operating income.

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Definitions:

Discord

A lack of agreement or harmony between people, ideas, or things, often leading to conflict or tension.

Significance

The degree to which a result, difference, or relationship is substantial or meaningful, often measured statistically in research.

Ghrelin

A substance primarily secreted by the stomach that promotes hunger and instructs the brain to consume more food.

Hypothalamus

A region of the brain responsible for the regulation of certain metabolic processes and other activities of the Autonomic Nervous System, including temperature control, hunger, and thirst.