Fixed Financial Charges Include

question 21

Multiple Choice

Fixed financial charges include

• A) stock repurchase expense.
• B) bond interest expense and preferred stock dividends.
• C) common stock dividends and bond interest expense.
• D) common stock dividends and preferred stock dividends.

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Definitions:

Dividend Yield

Dividend yield is a financial ratio that shows how much a company pays out in dividends each year relative to its stock price.

Expected Return

A synonym for Expected Rate of Return, signifying the profit or loss investors anticipate from an investment, commonly shown as a percentage.

Required Return

The minimum expected return an investor demands for a specific investment, considering the risk associated with it.

Dividend Yield

A financial ratio that indicates how much a company pays out in dividends each year relative to its share price.