Stock That Was Reacquired by the Company and Is Still

question 140

Multiple Choice

Stock that was reacquired by the company and is still held by the issuing corporation is called:

• A)Capital stock
• B)Treasury stock
• C)Redeemed stock
• D)Preferred stock
• E)Callable stock

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Definitions:

Present Value

The value of an asset or cash at present that is equivalent in value to a specified sum in the future.

Average Rate of Return

A financial ratio used to estimate the profitability of an investment, calculated by dividing the average annual profit by the initial investment cost.

Average Rate of Return

A calculation to determine the profitability of an investment, measuring the average annual return over the investment's lifespan compared to the initial cost.

Estimated Average Annual Income

The projected amount of money one expects to earn on average each year, often used for budgeting and planning purposes.