A Stock That Pays a Constant Annual Dividend Will Have

question 27

Multiple Choice

A stock that pays a constant annual dividend will have a market price that

• A)increases when the market rate of return increases.
• B)decreases when the market rate of return increases.
• C)decreases over time.
• D)increases over time.
• E)always remains constant.

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Definitions:

Ontological Argument

An argument (or set of arguments) that tries to prove the existence of God from the very concept of “God.” For example: God, by definition, is that Being with all possible perfection; existence is a perfection; therefore God exists.

Akhnaton

An ancient Egyptian pharaoh of the Eighteenth Dynasty who is noted for attempting to institute a monotheistic worship of the sun disk Aten.

Self-Creating

The concept of something or someone coming into existence or being through its own inherent capabilities, often used in philosophical and metaphysical discussions about the nature of being and creation.

Theodicies

Philosophical attempts to justify the goodness of God in the face of the existence of evil and suffering in the world.