Supernormal Growth Refers to a Firm That Increases Its Dividend

question 194

Multiple Choice

Supernormal growth refers to a firm that increases its dividend by:

• A) Three or more% per year.
• B) A rate which is most likely not sustainable over an extended period of time.
• C) A constant rate of 2 or more% per year.
• D) $.10 or more per year.
• E) An amount in excess of $.10 a year.

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Definitions:

Z Scores

Standardized scores that indicate how many standard deviations an element is from the mean of the dataset. They are used in statistics to compare different data points.

Normal Curve

A graphical representation of a distribution where the majority of data points are concentrated around the mean, decreasing in frequency the farther they are from the mean.

Percentages

A portion or share of a whole, expressed as a fraction of 100.

Normal Curve

A symmetrical, bell-shaped curve that represents the distribution of a set of data, indicating that data near the mean are more frequent in occurrence than data far from the mean.