The Principle of Parsimony Means the Simplest Answer That Explains

question 19

True/False

The principle of parsimony means the simplest answer that explains the least evidence.

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Definitions:

Dividend Growth Rate

The annualized percentage rate of growth of a company's dividends paid to shareholders, projected into the future.

Equity Financing

Raising capital through the sale of shares in a company.

Tax Rate

The proportion of taxable income that an entity is legally required to remit to the government, with different rates applied to different levels of income or different types of entities.

Subjective Approach

A method or perspective that is based on or influenced by personal feelings, tastes, or opinions, rather than external facts or evidence.