Student's T Is Used When
A) the Sample Is More $\le$

question 26

Multiple Choice

Student's t is used when

• A) the sample is more than 30 observations.
• B) the sample size is \(\le\) 5% of the population.
• C) the population standard deviation is unknown.
• D) any time.

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Definitions:

Financial Leverage

Taking on borrowed money to magnify the possible profits of an investment.

EBIT

Profitability metric that disregards interest and income tax expenses, known as earnings before interest and taxes.

Homemade Leverage

The use of personal borrowing to change the overall amount of financial leverage to which an individual or business is exposed.

Weighted Average Cost of Capital

Weighted Average Cost of Capital (WACC) is a calculation of a firm's cost of capital in which each category of capital is proportionately weighted.