If a College Admissions Officer Uses SAT Scores to Predict

question 11

Multiple Choice

If a college admissions officer uses SAT scores to predict college GPA, college GPA is the ___________ variable.

• A) criterion
• B) predictor
• C) probability
• D) theoretical

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Definitions:

Cost of Preferred Stock

The effective rate that a company pays on its issued preferred shares, calculated by dividing the dividend by the current price of the stock.

Par Value

The face value of a bond or stock, as stated by the issuing company, which does not necessarily reflect market value.

Annual Dividend

The total dividend payment a shareholder receives from a company in one year.

Debt-Equity Ratio

A gauge illustrating the mix between shareholder equity and debt in a company’s asset-financing strategy.