The Principle That the Cost of Something Is Equal to What

question 160

Multiple Choice

The principle that the cost of something is equal to what is sacrificed to get it is known as the

• A) marginal principle.
• B) principle of opportunity cost.
• C) principle of diminishing returns.
• D) reality principle.

Analyze and determine the impact of changing growth rates on stock valuation.

Application of valuation principles to preferred stocks.

Calculate and interpret the replacement cost of assets.

Understand the impact of dividend policy on stock value and dividend growth.