We Have Collected Price Per Share and Dividend Information from a Sample

question 30

Multiple Choice

We have collected price per share and dividend information from a sample of 30 companies. The y-intercept in this instance suggests:

• A) for each additional dollar in stock price, we can anticipate an additional $2.73 in dividend.
• B) for each additional dollar in stock price, we can anticipate a drop of $2.41 in dividend.
• C) when the stock price is zero, we can anticipate a dividend of $0.27. This value, however, makes no sense.
• D) when the stock price is zero, we can anticipate a dividend of $-3.68. This value, however, makes no sense.
• E) when the dividends are zero, we can anticipate a negative share price.

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Definitions:

Automatic Behaviors

Actions that are performed without conscious thought as a result of learning, habituation, or innate mechanisms.

Experiential System

Refers to a way of processing information that is automatic, holistic, and driven by emotions and personal experience.

Automatized Behavior

Actions or behaviors that have become automatic due to repetition and are performed without conscious thought.

Cognitive Processes

Mental activities involved in the acquisition, processing, and storage of knowledge.