Other Things Being Equal, the Larger the Expected Future Dividends

question 167

True/False

Other things being equal, the larger the expected future dividends to be received from stock ownership, the higher the current stock price.

---

Definitions:

Income Stocks

Stocks that regularly pay high dividends, typically associated with well-established companies with stable earnings.

Cash Dividends

Profits distributed to shareholders out of a company's earnings in the form of cash.

Large Capital Stocks

Shares issued by a company that represent significant equity ownership and investment in the company.

Cash Dividend

A payment made by a corporation out of its earnings to shareholders, usually in the form of cash.