Appropriate Administration of Ability Tests Used in Eligibility Decisions Should

question 8

Multiple Choice

Appropriate administration of ability tests used in eligibility decisions should not assess

• A) cognitive skills.
• B) demographics.
• C) cultural knowledge.
• D) English language ability.

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Definitions:

Cost Of Capital

Represents the rate of return that a company must earn on its investment projects to maintain its market value and attract funds.

Financial Leverage

The use of borrowed money (debt) to amplify the potential returns from an investment or project.

Bankruptcy Costs

Expenses and fees associated with the process of declaring bankruptcy, including legal fees, filing fees, and other related costs.

MM Theory

Modigliani-Miller Theorem; a financial theory stating that the market value of a company is independent of its capital structure and dividend policy under certain conditions.