Which of the Following Statements Is Most Correct

question 28

Multiple Choice

Which of the following statements is most correct?

• A) Assume that the required rate of return on a given stock is 13 percent. If the stock's dividend is growing at a constant rate of 5 percent, its expected dividend yield is 5 percent as well.
• B) The dividend yield on a stock is equal to the expected return less the expected capital gain.
• C) A stock's dividend yield can never exceed the expected growth rate.
• D) All of the answers above are correct.
• E) Answers b and c are correct.

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Definitions:

Lead Times

The amount of time that elapses between the initiation and completion of a process, such as the period from placing an order to delivery.

Minimum Shipment Quantities

The smallest amount of product that a supplier is willing to ship, usually determined by transport efficiency or the supplier's policy.

Transport

The movement of goods or people from one location to another, typically involving vehicles such as trucks, planes, or ships.

Transportation Network Design

The planning and optimization of routes and modes of transport to move goods efficiently from origin to destination.