Which of the following statements is CORRECT?
A. The capital structure that maximizes the stock price is generally the capital structure that also maximizes earnings per share.
B. All else equal, an increase in the corporate tax rate would tend to encourage a company to increase its debt ratio.
C. Since debt financing raises the firm's financial risk, increasing a company's debt ratio will always increase its WACC.
D. Since debt is cheaper than equity, increasing a company's debt ratio will always reduce its WACC.
E. When a company increases its debt ratio, the costs of equity and debt both increase. Therefore, the WACC must also increase.
Answer: B
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Which of the following statements about positioning a change is true?
A. Positioning a change is a reactive way of dealing with an initial turndown by the buying firm. B. Since a salesperson is acting as the change agent, any positioning of a change should take place in the purchasing department. C. Positioning a change is not at all similar to positioning a product in mass marketing. D. Positioning a change is similar to positioning a product in mass marketing. E. Salespeople have a limited role in the process of positioning a proposed change.
According to the contingency model, a relationship-oriented leadership style works best in ______ situations.
A. low control B. high control C. moderate control D. uncontrolled E. both high and low control
As one of the statistics associated with discriminant analysis, the ________ for each predictor is the ratio of the within-group sum of squares to the total sum of squares. Its value varies between 0 and 1
A) Wilks' ? B) discriminant scores C) discriminant function coefficients D) eigenvalue
Which of the following statements is False?
a. Tactical planning is done on a long term basis, usually involving 5-10 years. b. Strategic planning is done on a short term basis, usually involving 1-18 months. c. Strategic planning involves internal factors but does not include external factors. d. All of the above statements are False