What Is the Most Widely Used Technique for Determining the Best

question 64

Multiple Choice

What is the most widely used technique for determining the best combination of debt and stock?

• A) Debt-to-stock ratio
• B) Earnings per share/earnings before interest and tax analysis
• C) Gross profit analysis
• D) Capital asset pricing model
• E) Present value analysis

---

Definitions:

Rationalizing Inconsistency

The process of logically justifying conflicting or incompatible behaviors and beliefs.

Re-evaluating Values

The process of reviewing and possibly changing one's priorities and beliefs based on new information or changing circumstances.

Perceived Equity

An individual's belief regarding the fairness of their treatment in comparison with others, especially in terms of workload and rewards.

Performance/Satisfaction Relationship

The correlation between how well someone performs at their job and their level of job satisfaction.