Which of the Following Statements Is CORRECT,assuming Stocks Are in Equilibrium

question 82

Multiple Choice

Which of the following statements is CORRECT,assuming stocks are in equilibrium?

• A) The dividend yield on a constant growth stock must equal its expected total return minus its expected capital gains yield.
• B) Assume that the required return on a given stock is 13%.If the stock's dividend is growing at a constant rate of 5%,then its expected dividend yield is 5% as well.
• C) A stock's dividend yield can never exceed its expected growth rate.
• D) A required condition for one to use the constant growth model is that the stock's expected growth rate exceed its required rate of return.
• E) Other things held constant,the higher a company's beta coefficient,the lower its required rate of return.

Identify the ways a country may use or adopt IFRS.

Understand the principles for recognizing and measuring assets, liabilities, income, and expenses under IFRS for SMEs.

Understand the basic principles of recording financial transactions.

Comprehend the purpose and structure of a trial balance and its role in the accounting cycle.

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Definitions:

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The total amount of calories ingested through eating and drinking, critical in weight management and energy balance.

Urinate

The process of excreting urine from the bladder through the urethra to the outside of the body.

Respiratory Acidosis

A medical condition characterized by decreased blood pH due to the accumulation of carbon dioxide as a result of respiratory dysfunction.

Carbon Dioxide

A colorless, odorless gas produced by burning carbon and organic compounds and by respiration. It is naturally present in air and is absorbed by plants in photosynthesis.