A Transfer of the Right to the Possession and Use

question 2

Multiple Choice

A transfer of the right to the possession and use of real property for a set term in return for certain consideration is known as a(n) ________.

• A) title transfer
• B) lease
• C) novation
• D) easement

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Definitions:

Dividend Yield

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

Cost of Equity

The rate of return that a company is required to pay out to its equity investors, reflecting the compensation for the risk they undertake.

SML Approach

Security Market Line (SML) approach is a graphical representation in the Capital Asset Pricing Model (CAPM) that shows the expected return of an asset or portfolio at various levels of systemic risk.

WACC

Weighted Average Cost of Capital; a calculation of a firm's cost of capital in which each category of capital is proportionally weighted.