Which of the Following Key Terms Represents the Principles and Standards

question 28

Multiple Choice

Which of the following key terms represents the principles and standards that guide our behavior toward other people?

• A) Ethics
• B) Intellectual property
• C) Standards of living
• D) Security

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Definitions:

Gordon Model

A mathematical model for valuing stock based on an assumed constant growth rate into the indefinite future.

Cost Of Retained Earnings

The opportunity cost for shareholders of having a company retain and reinvest earnings rather than distributing them as dividends, often approximated by the expected return on equity.

Dividend

A portion of a company's earnings that is paid to shareholders, typically on a quarterly basis, as decided by the board of directors.

Cost Of Capital

The necessary yield a business needs to achieve on investment endeavors to preserve its market capitalization and secure capital.