An Advantage of a ________ Is That It Avoids Giving

question 32

Multiple Choice

An advantage of a ________ is that it avoids giving shareholders false hopes.

• A) constant-payout-ratio policy
• B) regular dividend policy
• C) low-regular-and-extra dividend policy
• D) target dividend policy

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Definitions:

Non-directional Hypothesis

A hypothesis that specifies there is a difference or relationship, but not the direction of the difference or relationship between variables.

T-statistic

A type of statistic calculated from sample data, used in hypothesis testing to determine whether to reject the null hypothesis, particularly in t-tests.

Null Hypothesis

A hypothesis that suggests there is no statistical significance between the two observed phenomena.

Alpha

In statistics, often referred to as the significance level, it represents the probability of rejecting the null hypothesis when it is actually true.