What Option Best Summarises Myron Gordon's Resolution of Uncertainty Argument

question 35

Multiple Choice

What option best summarises Myron Gordon's resolution of uncertainty argument?

• A) Investors perceive that a company, by spending all of its current cash flow, is replacing an uncertain dividend flow to shareholders now with a more certain flow in the future.
• B) Investors perceive that a company, by retaining and reinvesting a part of its current cash flow, is replacing a certain dividend flow to shareholders now with an uncertain more distant flow in the future.
• C) Investors perceive that a company, by retaining and reinvesting a part of its current cash flow, is replacing an uncertain dividend flow to shareholders now with a more certain flow in the future.
• D) Investors perceive that a company, by spending all of its current cash flow, is replacing a certain dividend flow to shareholders now with an uncertain more distant flow in the future.

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Definitions:

Power Relations

The dynamics of control, influence, and authority among individuals, groups, or institutions in any given context.

Industrialization

Describes the period of social and economic change that transforms a human group from an agrarian society into an industrial one.

Economic Life

Refers to all activities related to the production, distribution, and consumption of goods and services in an economy.

Gendered Institutions

Organizations and structures in society that reproduce gender distinctions and inequalities through their norms, policies, and practices.