Use the Following to Answer Question

question 203

Multiple Choice

Use the following to answer question:
-(Figure: The Demand Curve) Use Figure: The Demand Curve.By the midpoint method,the price elasticity of demand between $8 and $9 is approximately:

• A)0.18.
• B)0.56.
• C)1.80.
• D)5.67.

---

Definitions:

Residual Distribution Policy

A dividend payment policy in which dividends are based on earnings minus all planned capital investments and working capital needs.

Capital Budget

The process and plan for determining and allocating financial resources for major investments or projects within a company.

Payout Ratio

The proportion of earnings paid out as dividends to shareholders, often expressed as a percentage.

Dividend Policies

The policies and guidelines a company follows in deciding how much of its earnings it will pay out to shareholders as dividends.