Higher Dividend-Payout Policies Have a __________ Impact on the Value

question 75

Multiple Choice

Higher dividend-payout policies have a __________ impact on the value of the call and a __________ impact on the value of the put compared to lower dividend-payout policies.

• A) negative; negative
• B) positive; positive
• C) positive; negative
• D) negative; positive
• E) zero; zero

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Definitions:

Counterfactual

Thinking that involves imagining alternative scenarios and outcomes that might have happened, but did not.

Short-term Memory

The capacity for holding a small amount of information in an active, readily available state for a short period of time.

Long-term Memory

A type of memory that holds information for a long duration, potentially as long as a lifetime.

High Consistency

The extent to which a person's behavior remains stable and uniform across different situations and over time.