Which One of the Following Represents the Capital Gains Yield

question 111

Multiple Choice

Which one of the following represents the capital gains yield as used in the dividend growth model?

• A)D₁
• B)D₁/P₀
• C)P₀
• D)g
• E)g/P₀

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Definitions:

Unitary

A property of elasticity where a change in price causes a proportional change in the quantity demanded or supplied, with an elasticity coefficient of 1.

Incidence

Refers to the impact or burden of a tax, how it is distributed among various participants in the market.

Price Elasticity of Supply

A measure of how much the quantity supplied of a good responds to a change in the price of that good, quantitatively defined as the percentage change in quantity supplied divided by the percentage change in price.

Incidence

The allocation or impact of a tax or policy on the economic activities or welfare of different groups in society.