pratikpokharkar wrote:
Hi,
I have two queries. 1)Why option C is incorrect?? It aptly describe function of both BF.
2)Main conclusion of argument is "optimism is ill founded" then how first part of B can can support the conclusion??
Hi Pratik
Let me try to answer your queries.
1) Why option C is incorrect?? It aptly describe function of both BF.
Let us examine what option (C) states about the second BF: "the second
provides evidence in support of the explanation that the argument seeks to establish."
The second BF tries to provide an alternative hypothesis for what happens to a company's stock price when dividends are increased. As such, no
evidence is provided in the second BF for any theories, making option (C) incorrect.
2) Main conclusion of argument is "optimism is ill founded" then how first part of B can can support the conclusion?
Option (B) does not state that the first BF supports
the conclusion of the argument, which you have correctly identified. It merely states that the first BF supports
a conclusion, which is correct, as evidenced by the statement following the first BF: "Shareholders...are now relieved since increasing dividends generally boosts a company's stock price".
In other words, shareholders concluded that the share price of the company would increase based on the evidence of increased dividend payout.
Hope this clarifies.