The Primary Purpose of Performing a Pre-Test When Developing a Telephone

question 145

True/False

The primary purpose of performing a pre-test when developing a telephone or mail survey is to make sure that the respondents can understand the questions and are able to provide meaningful responses.

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Definitions:

Cost of Debt

The effective rate that a company pays on its current debt as part of its capital structure.

Debt-Equity Ratio

The financial ratio reflects how shareholders' equity and debt equally contribute to asset financing.

Yield-To-Maturity

An estimate of the total return expected on a bond if the bond is held until the date it matures.

WACC

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