Instructions and Procedures Should Avoid Technical Terms in Some Instances

question 8

True/False

Instructions and Procedures should avoid technical terms in some instances.

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Definitions:

ROE

Return on Equity; a measure of financial performance calculated by dividing net income by shareholder equity.

Dividend Growth Rate

The annualized percentage rate of growth of a company’s dividend payments.

Earnings

The amount of profit a company generates during a specific period, typically reported quarterly or annually.

Expected Growth Rate

The projected annual rate at which an investment, company, or economy is expected to grow, often used to make investment decisions.