The Concept of Dependency Ratios Has Been Criticized Because

question 8

Multiple Choice

The concept of dependency ratios has been criticized because:

• A)Individual differences in needs and in aging and activity make it difficult to ascertain which generation depends on others for help.
• B)Very few older adults ever rely on younger individuals for support and assistance.
• C)The most dependent generation may well be young adults.
• D)It is common knowledge that older adults are dependent on younger individuals.

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Definitions:

Preferred Shares

Preferred shares are a class of ownership in a corporation that has a higher claim on assets and earnings than common shares, typically entitling shareholders to fixed dividends ahead of common stockholders.

Cost of Equity

The anticipated reward that a corporation offers to its stockholders in exchange for the risk they take by investing their capital.

Stock Sells

The act of disposing of shares of stock or equity in a corporation, typically in exchange for cash or other compensation.

Cost of Equity

The return a company requires to decide if an investment meets capital return requirements and is often used to assess the cost of funding.