If Stock Prices Are Expected to Climb Next Year,everything Else

question 163

Multiple Choice

If stock prices are expected to climb next year,everything else held constant,the ________ curve for bonds shifts ________ and the interest rate ________.

• A)demand;left;rises
• B)demand;right;rises
• C)demand;left;falls
• D)supply;left;rises

Distinguish between equitable and legal remedies available in breach of contract situations.

Comprehend the special considerations involved in contracts for the sale and purchase of real estate, including agent rights and liabilities.

Understand the principles of determining the appropriate length and detail for business plans and marketing plans.

Recognize the effective use of visuals and photos in marketing plans, including their placement and presentation.

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Definitions:

Retention Rate

A metric indicating the percentage of earnings not paid out as dividends but retained by the company for reinvestment.

Plowback Ratio

The proportion of the firm’s earnings reinvested in the business (and therefore not paid out as dividends). The plowback ratio equals 1 minus the dividend payout ratio.

Expected Growth Rate

The anticipated rate at which an investment, economy, or other financial entity will grow over a certain period.

Rate of Return

The outcome in terms of profit or loss on an investment over a designated period, presented as a percentage of the investment’s first cost.