Company a and Company B Both Paid a $2 Per

question 15

Multiple Choice

Company A and Company B both paid a $2 per share dividend last year.This year,Company A announces an increase to $3 per share while Company B announces an increase to $2.50 per share.After the announcement,the price of Company B stock increases and the price of Company A's stock decreases.Which of the following best explains this situation?

• A) The stock market is irrational.
• B) Company A had higher agency costs than Company B prior to the announcement.
• C) Both companies need to raise capital for positive NPV projects and flotation costs are high.
• D) Capital markets are perfect.

Comprehend the motivational aspects behind gossip and the grapevine within organizations.

Recognize the importance of trust in effective communication and how it can be built or eroded in organizational contexts.

Understand the concept and applications of operant conditioning.

Differentiate between operant and respondent behaviors.

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Definitions:

Splenic Artery

A major blood vessel that supplies oxygen-rich blood to the spleen, branching from the abdominal aorta.

Ascending Aorta

The initial section of the aorta that rises up from the left ventricle of the heart, distributing oxygen-rich blood to the rest of the body.

Korotkoff Sounds

The sounds medical personnel listen for when they are taking blood pressure using a sphygmomanometer, which indicate the resumption of blood flow to the artery.

Turbulent Blood Flow

A type of blood flow characterized by chaotic changes in pressure and flow velocity, often associated with cardiovascular issues.