Those Economists Feeling That Low Dividend Payouts Will Increase Share

question 32

Multiple Choice

Those economists feeling that low dividend payouts will increase share price focus on:

• A) the difficulty in predicting earnings.
• B) superior reinvestment opportunities.
• C) tax differentials between dividends and capital gains.
• D) the cost of borrowing to maintain high payouts.

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Definitions:

Point Estimate

A single value or statistic that serves as the best guess or estimate of a population parameter.

Population Mean

Population mean is the average value of all elements in a complete set or population.

Point Estimator

A single value or statistic calculated from sample data that is used to estimate a population parameter.

Binomial Populations

Populations wherein each member must fall into one of two categories, which are mutually exclusive.