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:

Bankruptcy Trustee

An individual or corporation appointed in a bankruptcy case to represent the interests of the bankruptcy estate and the creditors.

Debtor's Property

refers to all tangible or intangible assets owned by an individual or entity who owes money to another party.

Fraudulent Transfers

Transactions made with the intention of evading creditors by moving assets out of their reach.

Bankruptcy Trustee

An individual appointed by a bankruptcy court to oversee and administer a debtor's estate during the bankruptcy process.