Exhibit 6-4: Use the Data for the Following Questions

question 74

Multiple Choice

Exhibit 6-4: Use the data for the following questions.Score 1: 34, 40, 42, 24, 30; Score 2: 40, 38, 41, 49, 42
-Refer to Exhibit 6-4.Compute the Pearson's r from the data.

• A) .74
• B) .83
• C) .92
• D) None of these are true.

---

Definitions:

Personal Tax Rate

The percentage of an individual's income that is paid to the government in taxes.

Corporate Tax Rate

The percentage of a corporation's income that is paid to the government as tax.

Leverage Value

Refers to the use of financial leverage or borrowing to increase the potential return of an investment, enhancing the value for shareholders.

Free Cash Flows

The amount of cash a company generates after accounting for capital expenditures needed to maintain or expand its asset base.