Economic Signals

question 207

Multiple Choice

Economic signals:

• A)result in shortages and surpluses.
• B)interfere with the trades that can be mutually beneficial.
• C)guide decision makers in their transactions in the marketplace.
• D)never provide adequate information to consumers.

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Definitions:

Repurchase Stock

The act of a company buying back its own shares from the marketplace, which can affect shareholder value and earnings per share.

Residual Dividend Policy

A strategy where dividends paid to shareholders are based on earnings left after all operational and expansion expenses and investments are covered.

NPV Projects

Projects that are evaluated based on their Net Present Value, which calculates the difference between the present value of cash inflows and outflows over a period of time.

Dividend Income

is money paid to shareholders out of a corporation's earnings in proportion to the number of shares held, usually on a regular basis.