Which of the Following Is the Best Definition of the Target

question 76

Multiple Choice

Which of the following is the best definition of the target payout ratio?

• A) Stocks attract particular groups based on dividend yield and the resulting tax effects.
• B) Price range between highest and lowest prices at which a stock is traded.
• C) A firm's long-term desired dividend-to-earnings ratio.
• D) Common stock on which dividends and capital gains are repackaged and sold separately.
• E) An increase in a firm's shares outstanding without any change in owner's equity.

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Definitions:

Price Support

The term used to refer to price floors applied to farm commodities; the minimum price that the government allows farmers to receive for farm commodities like wheat or corn.

Farm Incomes

Farm incomes encompass the earnings and revenue generated from agricultural activities, reflecting the financial health and viability of farming operations.

Price Elasticity

A measure of how much the quantity demanded of a good responds to a change in its price.

National Income

Total income earned by resource suppliers for their contributions to gross domestic product plus taxes on production and imports; the sum of wages and salaries, rent, interest, profit, proprietors’ income, and such taxes.