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FHP classifies firms based on the dividend to income ratio. A potential problem with this classification is that Select one: O a. Dividends are endogenous

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FHP classifies firms based on the dividend to income ratio. A potential problem with this classification is that Select one: O a. Dividends are endogenous and thus regression estimates are likely to be based b. Dividend ratios do not reflect Financial constraints facing the firm, Oc Few firms in the sample pay any dividends at all leading to sample blas Fazzari Hubbard and Petersen measure Q based on stock market data while Gilchrist and Himmelberg construct Q based on forecasts of firm fundamentals. Is it Fair to conclude then that FHP's measure of Qignores any role of expectations of firm fundamentals affecting investments Select one: a. Yes, that's a fair criticism O b. No, that's an incorrect conclusion O Can't say FHP classifies firms based on the dividend to income ratio. A potential problem with this classification is that Select one: O a. Dividends are endogenous and thus regression estimates are likely to be based b. Dividend ratios do not reflect Financial constraints facing the firm, Oc Few firms in the sample pay any dividends at all leading to sample blas Fazzari Hubbard and Petersen measure Q based on stock market data while Gilchrist and Himmelberg construct Q based on forecasts of firm fundamentals. Is it Fair to conclude then that FHP's measure of Qignores any role of expectations of firm fundamentals affecting investments Select one: a. Yes, that's a fair criticism O b. No, that's an incorrect conclusion O Can't say

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