If a Corporation's Retained Earnings Are Expected to Create Future

question 73

Multiple Choice

If a corporation's retained earnings are expected to create future profits,the market price of the firm's stock will ________ and create a ________ for stockholders if the stock is sold.

• A)increase; capital gain
• B)decrease; capital gain
• C)increase; loss of wealth
• D)decrease; loss of wealth

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Definitions:

Neurological Gate

A theoretical mechanism in the nervous system thought to control the transmission of pain signals to the brain.

Taste Buds

Sensory organs located on the tongue, allowing for the perception of taste, including sweet, sour, salty, bitter, and umami.

Taste Sensation

The experience or perception of flavor derived from the combination of a food's taste, smell, and texture.

Receptor Cells

Specialized cells that respond to specific types of energy (e.g., light, sound) and convert it into neural activity.