The Frequency Distribution Below Summarizes Employee Years of Service for Alpha

question 90

Multiple Choice

The frequency distribution below summarizes employee years of service for Alpha Corporation. Find the class midpoint for class 1-5. $$\begin{array} { | c | c | } \hline \text { Years of service } & \text { Frequency } \\\hline 1 - 5 & 5 \\6 - 10 & 20 \\11 - 15 & 25 \\16 - 20 & 10 \\21 - 25 & 5 \\26 - 30 & 3 \\\hline\end{array}$$

• A) 3.5
• B) 2.5
• C) 5.0
• D) 3.0

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Definitions:

Price Appreciation

The increase in the value of an asset or investment over time, not including the dividends or interest earned.

Current Income

The total amount of money earned within a specific time period, including wages, dividends, and interest.

Clientele Effect

The theory suggesting that changes in dividend policy will attract a different class of shareholders or cause the current shareholders to sell their shares.

Residual Dividend Theory

The idea that corporations pay dividends with whatever money is left over out of earnings after all projects with a positive NPV are undertaken.