Figure 4-20 -Refer to Figure 4-20.If the Price Is $25,then There Would

question 105

Multiple Choice

Figure 4-20
-Refer to Figure 4-20.If the price is $25,then there would be an excess

• A)supply of 100 units,and price would fall.
• B)supply of 300 units,and price would fall.
• C)demand of 100 units,and price would fall.
• D)demand of 300 units,and price would fall.

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Definitions:

Clientele Effect

A theory suggesting that the types of investors attracted to a company depend on the company's dividend policy and related tax treatments.

Compromise Dividend Policy

A strategy that aims to balance between retaining earnings for reinvestment and paying dividends to shareholders.

Residual Dividend Approach

A policy for determining dividend payments whereby dividends are set as the earnings left over after funding the company's capital expenditure and working capital needs.

Trading Range

The spread between the high and low prices at which a security trades over a certain period of time.