Buffer Stock Is Also Referred to as Cycle Stock

question 48

True/False

Buffer stock is also referred to as cycle stock.

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Definitions:

Return on Equity

A financial ratio calculated by dividing net income by shareholder equity, used to measure the profitability of a company in generating profit from its equity investments.

Debt-to-Equity Ratio

This ratio measures the mix of shareholders' equity to debt in financing a company's assets.

Dividend Yield

A fiscal metric indicating the annual dividend payout by a company compared to its share price.

Dividends Per Share

A measure of the dividend payment per share of stock issued, calculated by dividing the total dividends paid by the company by the number of outstanding shares.