Observing People and Asking Them Questions Are the Two Principal

question 90

Multiple Choice

Observing people and asking them questions are the two principal ways to obtain

• A) external secondary data.
• B) internal secondary data.
• C) primary data.
• D) experimental independent variables.
• E) nonprobability data.

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Definitions:

M&M Proposition I

A theorem stating that in a perfect market, the market value of a company is unaffected by how that company is financed, regardless of whether through debt or equity.

Debt

An amount of money borrowed by one party from another, to be repaid with interest.

M&M Proposition II

A theory in corporate finance that asserts the cost of equity is a linear function of the company's debt/equity ratio, under the assumption of no taxes and financial distress costs.