In the Case of the University of California V

question 30

Multiple Choice

In the case of the University of California v.Bakke, the U.S.Supreme Court determined that:

• A)universities cannot use race or ethnicity as a criterion for selecting students for admission.
• B)universities can use quotas based on race or ethnicity as needed to attain an ethnically diverse student body.
• C)using race as a criterion in selecting students was legitimate if it was one among many criteria in creating a more ethnically balanced student body.
• D)using race or ethnicity as a criterion in selecting students constituted a form of reverse discrimination against whites.

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Definitions:

Coupon Rate

The rate of interest a bond pays annually, expressed as a percentage of its nominal value.

Dividend Growth Rate

The annualized percentage rate of growth of a company’s dividend payout, indicating the stability and growth prospects of the company to investors.

Tax Rate

The percentage at which an individual or corporation is taxed, which can vary based on income levels, types of income, and other factors.

Cost of Equity

Represents the compensation the market requires to own equity in a company, reflecting the risk perceived by investors in holding that company's stocks.