The Capital Gain Yield

question 330

Multiple Choice

The capital gain yield:

• A) When subtracted from the dividend yield is equal to the required rate of return.
• B) Is the rate at which the price of the stock grows.
• C) Must always be a positive value.
• D) Is equal to the dividend amount divided by the current market price of the stock.
• E) Is the same as the current yield for shares of common stock.

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Definitions:

Concentration Ratio

A measure of the total output produced in an industry by a given number of firms, used to assess the level of market concentration and competition.

Corporate Concentration

The degree to which a small number of firms control a large market share of the total output or sales within an industry.

Herfindahl-Hirschman Index

A measure of market concentration to evaluate the competitive landscape, calculated by summing the squares of the market shares of all firms in the industry.

Herfindahl-Hirschman Index

A measure of market concentration and competition, calculated by squaring the market share of each firm competing in a market and summing the resulting numbers.