Events a and B Are Mutually Exclusive with PA) =

question 43

Multiple Choice

Events A and B are mutually exclusive with PA) = 0.3 and PB) = 0.2. Then, PBc) =

• A) 0.00
• B) 0.06
• C) 0.7
• D) 0.8

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Definitions:

Plowing Back

Refers to the strategy of reinvesting profits back into the business instead of distributing them as dividends.

Constant Growth DDM

The Constant Growth Dividend Discount Model (DDM) is a method to value a company's stock by assuming constant growth in dividends per share and discounting them back to present value.

Intrinsic Value

Intrinsic value is the inherent, true value of an investment, regardless of its current market price.

Dividends

Distributions of earnings paid to shareholders by a company, typically out of its profits.