Which of the Following Is the Best Definition of the Clientele

question 280

Multiple Choice

Which of the following is the best definition of the clientele effect?

• 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:

Future Value

Future worth of cash or an asset that is akin in value to a nominated sum in the present.

Annually

Pertaining to events or actions that occur once every year.

Present Value

The present worth of a future sum of money or sequence of cash payments, reduced at a particular rate of interest.

PV

An abbreviation for present value, referring to the value today of a future payment or series of payments, adjusted for a specific rate of return.