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During a Study Session About Evolution,one of Your Fellow Students

question 27

Multiple Choice

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?


Definitions:

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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