-Refer to Table 12

question 72

Multiple Choice

-Refer to Table 12.1. The change in the price of the bond is likely to be the result of

• A) a decrease in the price of goods and services.
• B) an increase in government spending.
• C) an increase in the price of goods and services.
• D) a decrease in the supply of bonds.
• E) none of these.

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Definitions:

Equity

Refers to the ownership interest held by shareholders in a corporation, measured by the portion of the company's capital that they own outright without any debts.

Dividends

Payments made by a corporation to its shareholders, typically from profits.

Dividend Yield

A ratio that shows how much a company pays out in dividends each year relative to its stock price.

Expected Dividend

The prospective dividend payment that an investor anticipates receiving from an investment in a stock based on current and historic yield trends.