A Change in Perceived Risk of a Stock Changes

question 3

Multiple Choice

A change in perceived risk of a stock changes

• A)the expected dividend growth rate.
• B)the expected sales price.
• C)the required rate of return.
• D)the current dividend.

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Definitions:

Taxpayer

A taxpayer is an individual or entity that is obligated to pay taxes to a federal, state, or local government body.

FMV

Fair Market Value, the price that a property or asset would sell for on the open market between a willing buyer and a willing seller.

Basis

The financial value assigned to an asset for tax purposes, used to determine the gain or loss upon its sale or other disposition.

Divorce

The legal dissolution of a marriage by a court or other competent body, often involving division of assets and debts.