Which of the Following Answer Is True

question 35

Multiple Choice

Which of the following answer is true?

• A)Firms have long-run target dividend payout ratios.
• B)Dividend changes follow shifts in long-term sustainable earnings.
• C)Managers are reluctant to make dividend changes that might have to be reversed.
• D)Firms have long-run target dividend payout ratios, dividend changes follow shifts in long-term sustainable earnings, and managers are reluctant to make dividend changes that might have to be reversed.

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Definitions:

Null Hypothesis

A statement or hypothesis that asserts there is no significant difference or relationship between specified populations, any observed difference being due to sampling or experimental error.

µ

The population mean, representing the average value of a given population.

α

Denotes the level of significance in hypothesis testing, representing the probability of rejecting the null hypothesis when it is true.

Null Hypothesis

A hypothesis that assumes no statistical significance in a set of given observations, aiming to be either proven or disproven.