Unexpected Inflation _____ Lenders and _____ Borrowers

question 16

Multiple Choice

Unexpected inflation _____ lenders and _____ borrowers.

• A) benefits; hurts
• B) hurts; benefits
• C) does not affect; benefits
• D) benefits; does not affect

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Definitions:

Dividend Payout Ratio

The percentage of net income paid to shareholders in the form of dividends.

Earnings Per Share

A financial ratio that indicates the portion of a company's profit allocated to each outstanding share of common stock, serving as an indicator of a company's profitability.

Dividend

A portion of a company's earnings distributed to its shareholders, typically in the form of cash payments or additional shares.

Dividend Payout Ratio

A financial metric indicating the proportion of earnings a company pays to its shareholders as dividends, typically expressed as a percentage.