The Difference Between the Purchase Price of a Financial Asset

question 186

Multiple Choice

The difference between the purchase price of a financial asset and the sale price of the asset is called a(n)

• A)capital gain.
• B)dividend.
• C)profit.
• D)investment.

Identify the laws regulating international business ethics, particularly the Foreign Corrupt Practices Act.

Understand the principles of dividend discount models (DDM) and their application to stock valuation.

Calculate intrinsic values of stocks using various valuation methods including constant growth DDM, capitalized earnings, and P/E ratios.

Understand and apply the concepts of book value and market value per share.

---

Definitions:

Equity Theory

A concept in social psychology that suggests individuals determine the fairness of their job outcomes by comparing themselves to others.

Piece Rate

A compensation system where employees are paid based on the quantity of units they produce or tasks they complete, encouraging productivity but potentially impacting job satisfaction and quality.

Specific High Learning Goal

A clearly defined objective aimed at achieving a significant level of knowledge or skill in a particular area.

Goal Setting

The process of establishing specific, measurable, achievable, relevant, and time-bound objectives.