Which of the Following Variables Is Not Necessary in Order

question 15

Multiple Choice

Which of the following variables is not necessary in order to estimate treatment effects using difference-in-differences?

• A)a treatment/control indicator
• B)pre-treatment / post-treatment indicator
• C)treatment group * treatment time interaction term
• D)post-treatment performance

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Definitions:

Earnings Per Share

A financial ratio that measures the portion of a company's profit allocated to each outstanding share of common stock, serving as an indicator of the company's profitability.

Compromise Dividend Policy

A dividend policy that seeks a balance between retaining earnings for company growth and paying dividends to shareholders, accommodating various investors' preferences.

Net Present Value

A financial metric that calculates the present value of all future cash flows (positive and negative) expected from a project or investment, discounted back to their present value.

Debt-Equity Ratio

A measure showing the relative contributions of debt and shareholders' equity in a company’s asset financing.