Suppose You Observe That the Sun Sets Every Evening After

question 72

Multiple Choice

Suppose you observe that the sun sets every evening after the six o'clock business report.If you conclude that the six o'clock business report makes the sun set, you are guilty of the fallacy of:

• A) division.
• B) composition.
• C) false cause.
• D) science.

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Definitions:

Preferred Share

A class of ownership in a corporation with a higher claim on assets and earnings than common stock.

Dividend

A portion of a company's earnings that is paid to shareholders, typically on a quarterly basis.

Earnings Retention Ratio

The proportion of a company's earnings not distributed as dividends but reinvested back into the company.

Market Capitalization Rate

The expected return on a security or a portfolio, equivalent to the expected growth rate of its dividends or earnings.