____ Concerns Whether the Same Measure Would Yield the Same

question 34

Multiple Choice

____ concerns whether the same measure would yield the same results on another occasion

• A) Validity
• B) Test-retest reliability
• C) Internal consistency
• D) Internal validity

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Definitions:

M&M Proposition I

A theory stating that the value of a leveraged firm is the same as the value of an unleveraged firm provided there are no taxes, bankruptcy costs, and asymmetric information.

Debt-Ratio

is a financial metric that compares a company's total debt to its total assets, showing how much of the company's assets are financed by debt.

Capital Structure

Refers to how a firm finances its overall activities and growth through different sources of funds, such as debt and equity.

M&M Proposition I

A theory stating that, in a perfect market, the value of a firm is unaffected by how it is financed, regardless of the debt-to-equity ratio.