Under Some Conditions, the Discounting of the Message Caused by a Non-Credible

question 36

Multiple Choice

Under some conditions, the discounting of the message caused by a non-credible source dissipates over time and the message produces attitude changes similar to one delivered by a credible source. This is known as:

• A) delayed attitude change.
• B) the source credibility effect.
• C) the sleeper effect.
• D) source-time interaction.

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Definitions:

Sustainable Growth Rate

The highest speed at which a business can expand its profits without having to raise its debt levels or issue more equity.

Retention Ratio

The percentage of net income that is retained to be reinvested in the business, rather than being paid out as dividends.

Dividend Payout Ratio

The percentage of earnings paid to shareholders in dividends, calculated by dividing the total amount of dividends by the net income of the company.

Net Income

The total earnings of a company after subtracting all expenses, taxes, and costs from total revenue.