Consider the Following Equation

question 23

Multiple Choice

Consider the following equation:
The term τ_g is

• A) the personal tax rate for dividend.
• B) the personal tax rate for capital gains.
• C) the price per share before a dividend is paid.
• D) the price per share after a dividend is paid.

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Definitions:

Id

A component of the human psyche, based on Freudian psychology, that is responsible for unconscious desires and impulses.

Ego

In psychoanalytic theory, the part of the personality that mediates between external reality and inner demands of the id and superego.

Correlation Coefficient

A number ranging from -1.00 to +1.00 that expresses the direction (positive or negative) and strength of the relationship between two variables.

Covariance Coefficient

A statistical measure that indicates the extent to which two variables change together; it can be positive, negative, or zero.