Sean Is Studying for His Philosophy Final Exam

question 33

Multiple Choice

Sean is studying for his philosophy final exam. He knows that the test will be all essays, and he knows that the professor often asks students to compare two philosophical approaches. As part of his studying, he writes several practice essays in which he compares some philosophical approaches. Sean's study method makes use of the cognitive principle called

• A) implicit memory.
• B) the hierarchy technique.
• C) encoding specificity.
• D) method of loci.

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Definitions:

Market Capitalization Rate

An alternative term often used to refer to the cost of equity or the expected return of a market portfolio.

Plowback Ratio

A metric indicating the percentage of earnings retained by a company after dividends have been paid out to shareholders.

P/E Ratio

A valuation metric that compares the current share price of a company to its per-share earnings.

Constant-Growth DDM

A valuation method that estimates the value of a stock by using its expected dividends, which grow at a constant rate indefinitely.