The Annual Rate of Return Method Is Also Referred to as

question 37

Multiple Choice

The annual rate of return method is also referred to as

• A)simple rate of return method.
• B)accounting rate of return method.
• C)unadjusted rate of return method.
• D)all of the above

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Definitions:

Growth Rate of Earnings

It is the rate at which a company's earnings are increasing or decreasing over a specific period, often used by investors to gauge the company's profitability trends.

Constant-Growth DDM

A model for valuing a stock by assuming constant dividends that grow at a steady rate indefinitely.

Beta

A gauge for determining the volatility or inherent risk of a security or portfolio against the market at large.

Dividend

A disbursement from a company to its shareholders, commonly in the form of profit distribution.