Which of the Following Statements Is Most Plausible

question 113

Multiple Choice

Which of the following statements is most plausible?

• A) Increases in stock price associated with a dividend increase are likely due to information conveyed by the increase.
• B) Increases in stock price associated with a dividend increase are likely due to changes in the company's capital structure.
• C) Increases in stock price associated with a dividend increase are likely due to investors' preference for dividends over capital gains.
• D) Increases in stock price associated with a dividend increase are likely due to the favorable tax treatment of dividends over capital gains.

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Definitions:

Absence

The state of being away or not present; in healthcare, it may refer to the lack of symptoms, disease, or issues.

Theory

A system of ideas intended to explain something, based on general principles independent of the thing to be explained, used as a basis for further study or investigation.

Meso Compound

A type of stereochemical configuration in compounds with multiple chiral centers that has an internal plane of symmetry, making it achiral despite having stereocenters.

Molecule

The smallest particle of a chemical substance that can exist independently while retaining the composition and chemical properties of the substance.