Deductive Reasoning Is Considered to Be a Stronger and More

question 421

Multiple Choice

Deductive reasoning is considered to be a stronger and more valid form of reasoning than inductive reasoning because

• A)if the premises are true, the conclusion cannot be false
• B)inductive reasoning is more vulnerable to the representativeness heuristic
• C)deductive reasoning is less vulnerable to the availability heuristic
• D)deductive reasoning leads to a high likelihood that the conclusions are true

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Definitions:

Flotation Costs

Expenses incurred by a company in issuing new securities, including underwriting, legal, and registration fees.

Tax Rate

The rate at which taxes are applied to a person or company's income.

WACC

The Weighted Average Cost of Capital; a calculation of a firm's cost of capital in which each category of capital is proportionately weighted.

Cost of Capital

The required return necessary to make a capital budgeting project, such as building a new factory, worthwhile.