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

Question 26

Multiple Choice

We have collected price per share and dividend information from a sample of 30 companies. 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 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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