Deepa Has Finally Decided Where to Attend Graduate School-University of Illinois

question 122

Multiple Choice

Deepa has finally decided where to attend graduate school-University of Illinois at Urbana-Champaign. After she has informed all the schools of her final decision, she begins to question her choice. However, she immediately focuses on all the reasons Illinois was the best choice for her and better than her other options by far. This reassures her and makes her happy again. Deepa's feeling of uncertainty and subsequent motivation to justify her choice is an example of ____.

• A)attributional regret
• B)post-decision dissonance
• C)tyranny of choice
• D)attitude accessibility

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Definitions:

Dividend Reinvestment Plans

Investment plans that allow shareholders to automatically reinvest their cash dividends in additional shares of the company's stock, usually without commission.

Strict Residual Dividend Policy

A dividend policy in which dividends are based on the earnings left over after all operating expenses, taxes, and project investments are covered.

Dividend Payout Ratio

The percentage of earnings paid to shareholders in dividends, calculated as dividends per share divided by earnings per share.

Clientele Effect

The attraction of companies with specific dividend policies to those investors whose needs are best served by those policies. Thus, companies with high dividends will have a clientele of investors with low marginal tax rates and strong desires for current income. Similarly, companies with low dividends will attract a clientele with little need for current income and who often have high marginal tax rates.