Higher Required Returns

question 9

Multiple Choice

Higher required returns

• A)decrease stock prices
• B)are required by the efficient market hypothesis
• C)increase dividends
• D)are associated with higher dividends

---

Definitions:

Selling Price

The price at which a good or service is offered to a buyer.

Perpetual Inventory System

An inventory accounting system where updates are made continuously as transactions occur, providing a real-time inventory level.

Perpetual Inventory System

A system of inventory accounting that instantly logs inventory sales or purchases using computerized point-of-sale systems and software for enterprise asset management.

Gross Method

An accounting method where purchases are recorded at their full (gross) cost without deducting any cash discounts.