medium · GMAT Verbal
Argument: **Critics of the new corporate environmental policy argue that the cost of compliance will reduce the company's dividend payments.** Although these costs are indeed substantial, the company's shift toward sustainable energy is likely to attract a new class of institutional investors. **The influx of capital from these investors will likely stabilize the stock price even if dividends are temporarily lower.** Consequently, the policy is a sound long-term strategy for shareholder value.
Which of the following best describes the roles played by the boldfaced portions?
- The first is a position that the argument challenges; the second is a premise used to support the author's conclusion.
- The first and second are both positions that the author opposes in favor of a third alternative.
- The first is the main conclusion of the argument; the second is evidence offered by the critics to support it.
- The first is a premise that the author accepts; the second is the main conclusion of the argument.
- The first is background information; the second is a counter-argument to the author's position.
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