If a Test Consists of a List of True/False Questions

question 94

Multiple Choice

If a test consists of a list of True/False questions and is graded using a computer-scored answer sheet, then it is a(n)

• A) projective test.
• B) Q-sort.
• C) objective test.
• D) commonality scale.

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Definitions:

Discount Rate

The discount rate applied in the process of discounted cash flow (DCF) analysis to calculate the current value of anticipated future cash flows.

Abnormal Earnings Approach

A valuation method that estimates a company's value based on the prediction of future abnormal earnings, defined as earnings in excess of a normal return on investment.

Free Cash Flow Approach

A valuation method focusing on the cash flows that a company can generate after accounting for capital expenditures required to maintain or expand the asset base.

Return On Assets

A financial ratio indicating the profitability of a company relative to its total assets, measuring how efficiently a company uses its assets to generate profit.