In Economics,capital Is Defined as a Financial Asset Such as Stocks

question 4

True/False

In economics,capital is defined as a financial asset such as stocks and bonds.

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Definitions:

ROE

Return on Equity, a measure of financial performance calculated by dividing net income by shareholders' equity, indicating how effectively management is using a company’s assets to create profits.

Dividend Growth Rate

The annualized percentage rate of growth of a company's dividend payments to shareholders.

Plowing Back

The reinvestment of earnings by a company back into its business rather than distributing them as dividends to shareholders.

Risk-Free Rate

The risk-free rate is the theoretical rate of return of an investment with zero risk, often represented by the yield on government bonds.