Jupiter, Co

question 24

Multiple Choice

Jupiter, Co. will be distributing $40 million to shareholders through a special dividend. The company has 160 million shares outstanding. If you own 100 shares of Jupiter, Co. how much will you receive? Ignore taxes.

• A) $400
• B) $100
• C) $25
• D) None of these

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Definitions:

Correspondent Inference

The process by which observers infer the stable dispositions of others from their observed behavior, particularly when the actions are non-common or unexpected.

Representativeness Heuristic

The tendency to overestimate the likelihood that a target is part of a category if the person has features that seem representative of that category.

Availability Heuristic

A mental shortcut that relies on immediate examples that come to a person's mind when evaluating a specific topic, concept, method, or decision.

Halo Effect

A cognitive bias where a positive impression in one area influences a person's perception in other areas.