The Value of a Share Is a Function of

question 5

Multiple Choice

The value of a share is a function of

• A) past returns.
• B) historic dividend growth rate.
• C) future returns.
• D) most recent earnings per share.

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Definitions:

Private Goods

Goods that are both excludable and rival in consumption, meaning only paying customers can use them and one person's use diminishes others' ability to use them.

Public Goods

Goods that are non-excludable and non-rivalrous, meaning they are available to all without depletion from use by others.

Rivalry

Competition between businesses or individuals for market share, resources, or achievements.

Excludability

Excludability is a property of a good or service that allows its owner to prevent others from using it without permission, which is important for classifying goods in economic terms.