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

Question 151

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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