Use the Information for the Question(s)below

question 64

Multiple Choice

Use the information for the question(s) below.
Luther Industries has $5 million in excess cash and one million shares outstanding. Luther is considering investing the cash in one-year Treasury bonds that are currently paying 5% interest and then using the cash to pay a dividend next year. Alternatively, Luther can pay the cash out as a dividend immediately and the shareholders can invest in the Treasury bonds themselves. Assume that capital markets are perfect.
-If Luther invests the excess cash in Treasury bonds, then the dividend per share next year will be closest to:

• A)$4.75.
• B)$5.25.
• C)$5.00.
• D)$1.05.

Recognize the role of environmental and genetic factors in shaping intelligence.

Differentiate among various theories of intelligence (e.g., Spearman's g-factor, Thurstone's primary mental abilities, Gardner's multiple intelligences, Sternberg's triarchic theory).

Identify the components and significance of IQ tests, including how IQ scores are calculated and interpreted.

Appreciate the implications of high or low IQ scores on academic and professional outcomes.

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Definitions:

Monopolistically Competitive

A market structure in which many companies sell products that are similar but not identical, allowing for competition based on quality, price, and marketing.

Allocative Efficiency

A state of the economy where resources are distributed according to consumer preferences in a way that maximizes overall welfare.

Productive Efficiency

A situation in which an economy or a production process can no longer produce more of one good without sacrificing the production of another good and occurs at any point on the production possibility frontier.

Product Variety

The range of different products or services offered by a company or available in a market.