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During a study session about evolution,one of your fellow students remarks,"The giraffe stretched its neck while reaching for higher leaves;its offspring inherited longer necks as a result." Which statement is most likely to be helpful in correcting this student's misconception?
Retained Earnings
The part of a company's earnings that is not distributed as dividends to its shareholders but is instead reinvested or saved.
Dividend Cut
A reduction in the dividend amount paid by a corporation to its shareholders, often due to financial difficulties or the need to conserve cash.
Bird in the Hand Theory
A theory that suggests investors prefer the certainty of dividend payments to the possibility of much higher future capital gains.
Dividend Distribution
The method by which a corporation's earnings are distributed among its shareholders in the form of dividends.
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