Managers Should Not Change the Capital Structure Unless It Departs

question 87

Multiple Choice

Managers should not change the capital structure unless it departs significantly from the optimal level because such a change would ________.

• A) reduce dividends
• B) incur transactions costs
• C) increase fixed costs
• D) change incentives of stakeholders

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Definitions:

Industrial/Organizational

Relating to the study or practice of psychology applied to the workplace, including issues of personnel, work behavior, and organizational structure.

Control Group

In experimental research, the group of participants that does not receive the treatment or intervention being tested, used as a baseline to measure how other tested groups compare.

Math Task

An assignment or activity designed to assess or improve an individual's ability to perform mathematical calculations or solve problems.

Non-Dieters

Individuals who do not follow a restricted eating plan for weight loss or other health-related reasons.