A Shareholder Is Interested in the Ability of a Firm

question 73

Multiple Choice

A shareholder is interested in the ability of a firm to

• A) pay consistent dividends.
• B) appreciate in share price.
• C) survive over a long period.
• D) All of these answer choices are correct.

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Definitions:

Return

The profit or loss derived from an investment over a particular period, usually expressed as a percentage.

Investment

Putting money into channels with the expectation of financial growth or profit generation.

Equipment

Tangible assets used in the operation or production process of a business, such as machinery, computers, and tools.

Interest Rate

The percentage of a loan that is applied as interest for the borrower, usually shown as an annual rate.