The Zolo Company Just Declared That It Is Increasing Its

question 5

Multiple Choice

The Zolo Company just declared that it is increasing its annual dividend from $1.00 per share to $1.25 per share.If the stock price remains constant,then:

• A)the capital gains yield will decrease.
• B)the capital gains yield will increase.
• C)the dividend yield will increase.
• D)the dividend yield will also remain constant.
• E)neither the capital gains yield nor the dividend yield will change.

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Definitions:

Statistical Base

The underlying data or information used for statistical analysis or for forming conclusions.

Numerator

The top number in a fraction, representing the number of equal parts being considered, as opposed to the denominator which indicates the total number of parts.

External Validity

The extent to which the results of a study can be generalized or applied to contexts outside the study conditions.

Telephone Surveys

A research method in which data is collected from respondents over the telephone to gather information on various topics.