The Required Return Is Defined As

question 63

Multiple Choice

The required return is defined as:

• A) The capital gains yield plus the dividend yield.
• B) Next year's dividend divided by the current price.
• C) The increase in the value of a share of stock over a period of time.
• D) The rate at which a stock increases in value.
• E) The payment by a corporation to shareholders in the form of cash or stock.

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Definitions:

Transfer Prices

Prices assigned to transactions between related entities within a multinational corporation, often for accounting and tax purposes.

Decentralized Units

Separate divisions or departments within an organization that operate semi-autonomously, with their management responsible for certain decisions and operations.

Investment Centers

Segments or units within an organization for which the manager is responsible for generating revenue and controlling costs, often evaluated based on their return on investment.

Profit Centers

Segments or departments within a business that are responsible for generating profits and are evaluated on their profitability performance.