A Stock's Price Will Fall If There Is

question 20

Multiple Choice

A stock's price will fall if there is

• A)a decrease in perceived risk.
• B)an increase in the required rate of return.
• C)an increase in the future sales price.
• D)current dividends are high.

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Definitions:

Per Unit Basis

A method of expressing costs, pricing, or other financial measures on a per single unit of product or service basis.

Indirect Costs

Expenses not directly tied to a specific product or service, such as overheads, that are necessary for running a business.

Variable Costs

Costs that change in proportion to the level of production or sales activity, such as raw materials and direct labor.

Manufacturing Overhead

All indirect costs associated with the production of goods, such as utilities, maintenance, and manager salaries.