Question: There are two types of dividend reinvestment plans. Under one type of plan, the firm uses the cash that would have been paid as dividends to buy stock on the open market. Under the other type, the company issues new stock, keeps the cash that would have been paid out, and in effect sells new stock to those investors who choose to reinvest their dividends. True False
Answer Choices:
Answer: True
Question: If a firm pays out all of its earnings as dividends and its stockholders then elect to have all of their dividends reinvested, the company should reconsider its dividend policy and possibly move to a lower dividend payout ratio. True False
Answer Choices:
Answer: True
Question: If a firm declares a 20:1 stock split, and the pre-split price was $500, then we might expect the post-split price to be $25. However, it often turns out that the post-split price will be higher than $25. This higher price could be due to signaling effects investors believe that management split the stock because they think the firm is going to do better in the future. The higher price could also be because investors like lower-priced shares. True False
Answer Choices:
Answer: True
Question: Your firm uses the residual dividend model to set dividend policy. Market interest rates suddenly rise, and stock prices decline. Your firm’s earnings, investment opportunities, and capital structure do not change. If the firm follows the residual dividend model, then its dividend payout ratio would increase. True False
Answer Choices:
Answer: True
Question: Suppose you plotted a curve which showed a Firm U’s WACC on the vertical axis and its debt ratio on the horizontal axis. Then you plotted a similar curve for Firm V. The curve for Firm U resembled a shallow “U,” while that for Firm V resembled a sharp “V.” Both firms have debt ratios that cause their WACCs to be minimized. Other things held constant, it would be easier for Firm V than Firm U to maintain a steady dividend and let the debt ratio vary without causing much opportunities and earnings from year to year. True False
Answer Choices:
Answer: False
Question: What did romanticism and existentialism have in common?
Answer Choices:
A. The importance of subjective experience
B. A belief in fate
C. The respect for materialism
D. A quest for scientific truth
Answer: A – The importance of subjective experience
Question: What provided the link between mental philosophy and the science of psychology in the 17th and 18th century?
Answer Choices:
A. Astronomy
B. Physiology
C. Physics
D. Mathematics
Answer: B – Physiology
Question: Why is the Bell-Magendie law significant?
Answer Choices:
A. It solved the mind-body problem.
B. It confirmed Huxley’s view of nerve conduction.
C. It demonstrated that specific mental functions are mediated by different anatomical structures.
D. It allowed individual differences in reaction times among individuals to be equalized.
Answer: C – It demonstrated that specific mental functions are mediated by different anatomical structures.
Question: What is Müller’s proposition that there are five types of sensory nerves, each containing a characteristic energy?
Answer Choices:
A. The Bell-Magendie law
B. The doctrine of specific nerve energies
C. The principle of the conservation of energy
D. The law of forward conduction
Answer: B – The doctrine of specific nerve energies
Question: Helmholtz found that when individuals with normal vision wear distorted lenses, they:
Answer Choices:
A. continue to perceive normally
B. make perceptual mistakes at first but then adapt and perceive normally
C. make perceptual mistakes until the lenses come off
D. cannot make any correct judgments of object distances
Answer: B – make perceptual mistakes at first but then adapt and perceive normally
Question: Helmholtz changed slightly the color vision theory of ___ and supported it with experimental evidence.
Answer Choices:
A. Kant
B. Hering
C. Young
D. Weber
Answer: C – Young
Question: To account for color vision, Helmholtz postulated the existence of:
Answer Choices:
A. three types of color receptors corresponding to three primary colors
B. separate receptors for each wavelength in the visual spectrum
C. one type of receptor that responded to all of the wavelengths in the visual spectrum
D. receptors that process all ranges of wavelengths
Answer: A – three types of color receptors corresponding to three primary colors
Question: Helmholtz expressed amazement over the fact that:
Answer Choices:
A. sensations so accurately reflect physical reality
B. physiological mechanisms provide feedback with minimal stimulation
C. sensory systems distort our knowledge of the physical world to such a great extent
D. the faculties of the mind can convert our distorted sensory information about the physical world
Answer: C – sensory systems distort our knowledge of the physical world to such a great extent
Question: Helmholtz’s theory of auditory perception is called the:
Answer Choices:
A. doctrine of specific nerve energies
B. resonance place theory
C. auditory loop theory
D. vibration theory
Answer: B – resonance place theory
Question: According to Hering’s theory of color vision, if a person stares at a blue object for a considerable time and then looks at a white sheet of paper, he or she will experience a ___ afterimage.
Answer Choices:
A. yellow
B. red
C. green
D. blue
Answer: A – yellow
Question: Although Lash-Fencliste complied all of the requirements for her Ph.D. in 1894, she was not granted the degree until 1926. The delay was because:
Answer Choices:
A. She was accused of falsifying data
B. She was a woman
C. Her dissertation topic
D. The quality of her research was considered inferior
Answer: B – She was a woman
Question: Determining a person’s character by analyzing his or her facial features, bodily structure, posture, and movement is called:
Answer Choices:
A. physiognomy
B. the theory of signs
C. transcendental inference
D. vitalism
Answer: A – physiognomy
Question: Examining the protrusions and depressions on a person’s skull to determine the strength of his or her faculties is called:
Answer Choices:
A. monadology
B. faculty psychology
C. craniology
D. phrenology
Answer: D – phrenology
Question: Gall believed which of the following?
Answer Choices:
A. There is no relationship between the size of the cortex and intelligence
B. The faculties of the mind are aspects of the soul, not of the brain
C. The bumps and indentations on the skull indicate the magnitude of the underlying faculties
D. The mind functions as an indivisible whole
Answer: C – The bumps and indentations on the skull indicate the magnitude of the underlying faculties
Question: What did Flourens’ brain research reveal that was incompatible with phrenology?
Answer Choices:
A. There are many localized cortical functions
B. Protrusions of the skull do not correlate well with brain structure
C. The central area of the brain functions as a whole
D. There are vast individual differences among human brains
Answer: B – Protrusions of the skull do not correlate well with brain structure