Match the Following Terms with Their Definitions

question 57

Multiple Choice

Match the following terms with their definitions.
-Discount period

• A)Number of days bank will wait for its money in the discount process
• B)Cash paid on due date
• C)The principal
• D)Maturity value minus bank discount
• E)A written promise
• F)Bank deducts interest in advance
• G)Signs the note
• H)Rate bank charges in the discounting process
• I)True rate of interest
• J)Due date
• K)Ability to borrow quickly
• L)Amount bank charges in the discounting process
• M)Maturity value greater than original note

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Definitions:

Dividend Growth Model

A valuation method used to estimate the price of a stock by using predicted dividends and discounting them back to their present value.

Dividend Yield

This financial statistic demonstrates a company's dividend payments per year compared to its current stock price.

Capital Gains Yield

The price appreciation component of a stock's total return, excluding dividends, calculated as the change in price over a period divided by the initial price.