Conservative Economists Feel That High Dividend Payouts Will Increase Share

question 6

Multiple Choice

Conservative economists feel that high dividend payouts will increase share price because:

• A) capital gains are less certain than dividends.
• B) dividends signal higher future retained earnings.
• C) stocks are priced using dividend discount models.
• D) higher dividend payouts translate into higher investment returns.

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Definitions:

New Laws of 1542

Historical regulations enacted by the Spanish crown to reform the administration of Spanish colonies and improve the treatment of Indigenous peoples in the Americas.

Encomienda System

A labor system instituted by the Spanish in the New World that granted colonists authority over indigenous peoples for the purpose of extracting labor and tribute, while supposedly providing protection and religious instruction.

Gonzalo Pizzaro

A Spanish conquistador known for leading an expedition into the Amazon basin in search of the mythical city of El Dorado.

Conquistadores

Spanish term for “conquerors,” applied to Spanish and Portuguese soldiers who conquered lands held by indigenous peoples in central and southern America as well as the current states of Texas, New Mexico, Arizona, and California.