Which of the Following Is Most Likely to Cause a Firm

question 19

Multiple Choice

Which of the following is most likely to cause a firm to use less financial leverage?

• A)currently low profits, but a large need for new funds
• B)concern for the firm's Moodys and S & P bond ratings
• C)low business risk
• D)avoidance of a corporate takeover

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Definitions:

Confidence Interval

A range of values, derived from statistical analysis, that is believed to contain the true value of an unknown population parameter with a specified level of certainty.

Degrees of Freedom

The number of independent values or quantities that can vary in the calculation of a statistic, often affecting its distribution.

Confidence Interval

A scope of values, extracted from sample studies, that is likely to enclose the value of an unknown characteristic of the population.

T-Distribution

A statistical distribution used when estimating population parameters of a normally distributed population in situations where the sample size is small and the population standard deviation is unknown.