A Budget Helps In

question 17

Multiple Choice

A budget helps in:

• A) setting financial goals.
• B) calculating discounted cash flows.
• C) giving feedback on how close you are to reaching your long-term financial goals.
• D) monitoring and controlling spending.
• E) determining the value of assets.

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Definitions:

Investor's Return

The positive or negative shift in an investment's financial value during a set interval, portrayed as a percentage of the investment's initial price.

Stock Price

The cost of purchasing a share of a company's stock, determined by the supply and demand for it in the market.

Dividend Growth Rate

The yearly rate of growth in the dividends a company pays out to its shareholders.

Expected Dividend

The forecasted amount of dividends that a company plans to pay to its shareholders.