Sometimes Researchers Actually Try to Reduce__________ Validity by Obscuring the True

question 53

Multiple Choice

Sometimes researchers actually try to reduce__________ validity by obscuring the true purpose of a measure.

• A) construct
• B) convergent
• C) discriminant
• D) face

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Definitions:

Target Capital Structure

The ideal mix of debt, preferred stock, and common equity that a company aims to hold in order to minimize its cost of capital and maximize its value.

Floatation Costs

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

WACC

Weighted Average Cost of Capital - a measure of a firm's cost of capital in which each category of capital is proportionately weighted.

WACC

stands for Weighted Average Cost of Capital, which is a calculation of a firm's capital cost from all sources, including equity and debt, weighted accordingly.