All of the Following Are Rationales Given for a Stock

question 116

Multiple Choice

All of the following are rationales given for a stock dividend or split except:

• A) the price will not fall proportionately to the share increase.
• B) an optimum price range does not exist.
• C) there is positive informational content associated with the announcement.
• D) conservation of corporate cash.

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Definitions:

Milgram Experiment

A psychological experiment conducted by Stanley Milgram in the 1960s to study obedience to authority, where participants were instructed to administer electric shocks to another person.

Stanford University Prison Experiment

A psychological study conducted by Philip Zimbardo in 1971 at Stanford University, where students were assigned roles of prisoners and guards to explore the effects of perceived power.

Generalization

Drawing a conclusion about a certain characteristic of a population based on a sample from it.

Logical Support

The provision of reasons or evidence to justify a claim or argument.