An Increase in Stock Price Is Called

question 122

Multiple Choice

An increase in stock price is called

• A)corporate earnings.
• B)a capital gain.
• C) income.
• D)a rate of return.
• E)a dividend yield.

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Definitions:

Investment Required

Investment required refers to the total amount of capital needed to undertake a project, start a new business, or make a significant purchase.

Profitability Index

A financial tool used to measure the relative profitability of an investment, calculated as the present value of future cash flows divided by initial investment.

Internal Rate Of Return

A discount rate that makes the net present value (NPV) of all cash flows from a particular project equal to zero.

Preference Decisions

Decisions made in business or personal finance that reflect a choice or priority among various alternatives, often based on factors such as risk, return, or personal values.