According to an Analysis by the Center on Budget and Policy

question 51

Multiple Choice

According to an analysis by the Center on Budget and Policy Priorities, what was the effect of the Social Security program on the poverty rates of older adults?

• A) Almost half of older adults were kept out of poverty by the social security program.
• B) The program was ineffective on many measures.
• C) One in 10 older adults was kept out of poverty by Social Security.
• D) The situation is too complex to determine impacts.

---

Definitions:

Dividend Growth

Dividend growth is the rate at which a company's dividend payments to shareholders increase over time.

SML Approach

Refers to the Security Market Line approach, a graphical representation of the Capital Asset Pricing Model (CAPM), showing the relationship between the expected return of a security and its beta (systematic risk).

Cost of Equity

The return a company needs to generate on its equity investments to compensate its shareholders for taking on the risk of investing.

After-Tax Cost of Debt

The net cost of debt to a company after accounting for the tax deductions on interest expenses.