If X_N Is an Autonomous $90 and the MPM Is

question 95

Multiple Choice

If X_N is an autonomous $90 and the MPM is 0.2,what is the value of X_N at an income of $500?

• A)+$10.
• B)-$10.
• C)+$90.
• D)+$590.

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Definitions:

Market Value

The existing market price for buying or selling an asset or service.

Cash Dividend

A distribution of a portion of a company's earnings, decided by the board of directors, paid to shareholders in cash.

Common Dividend Payable

Liabilities on a company's balance sheet representing the amount of dividends that are owed to shareholders on common stock.

Shares Outstanding

Shares outstanding refer to all shares currently owned by shareholders, including restricted shares owned by company insiders and share blocks held by institutional investors.