Justin Listens to a Guest Lecturer in His Psychology Class

question 48

Multiple Choice

Justin listens to a guest lecturer in his psychology class while he scans the sports news on his laptop.He thinks the speaker's argument makes a lot of sense based on her clear and measured way of speaking.Which form of peripheral cue is he using?

• A)The message itself
• B)The speaker's manner of presentation
• C)His perceived similarities with the speaker
• D)The characteristics of the speaker

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Definitions:

Corporate Tax Rate

The tax imposed on the net income of a corporation, with rates varying by country and sometimes also by the level of income.

Leverage

Leverage refers to the use of borrowing (debt in capital structure) to amplify potential returns from an investment or project.

Personal Tax Rate

The percentage at which an individual's income is taxed by the government, varying by income level and jurisdiction.

Miller Model

A theory on capital structure that extends the Modigliani-Miller theorem by including corporate taxes but excluding bankruptcy costs.