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.

Question

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.

Quizplus · Accepted Answer

The Answer of 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.

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