When Two Variables Appear to Be Causally Connected but in Reality,they

question 41

Short Answer

When two variables appear to be causally connected but in reality,they are not because an unseen third factor is the true cause,this is called________.

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Definitions:

Sustainable Growth Rate

The maximum rate at which a company can grow its earnings without needing to increase its financial leverage or equity financing.

Financial Statement

A written record that conveys the business activities and the financial performance of a company.

Debt-Equity Ratio

The measure indicating the dual use of debt and equity in the economic structuring of a company’s assets.

Dividend Payout Ratio

The fraction of net income a firm pays to its shareholders in dividends, represented as a percentage.