One Can Estimate the Expected Rate of Return or the Cost

question 41

Multiple Choice

One can estimate the expected rate of return or the cost of equity capital as follows:

• A)Dividend yield - expected rate of growth in dividends.
• B)Dividend yield + expected rate of growth in dividends.
• C)Dividend yield/expected rate of growth in dividends.
• D)(Dividend yield)× (expected rate of growth in dividends).

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Definitions:

Accounts Receivable

Represents money owed to a company by its customers for goods or services sold on credit.

Services

Intangible products provided to consumers, which may include consultancy, maintenance, delivery, or repair services.

Journalize

The process of recording financial transactions in a company's journal, detailing the accounts that are affected and by how much.

Office Expense

Costs related to activities within an office, including supplies, utilities, and administrative salaries, which are necessary for maintaining the office environment.