The Adjusted Basis Is the Cost Basis Less Cost Recovery

question 87

True/False

The adjusted basis is the cost basis less cost recovery deductions.

---

Definitions:

Annual Dividend

The total dividend payment a company makes to its shareholders in a year.

Dividend Growth Model

A valuation method used to estimate the value of a stock based on its expected future dividend payments and growth rate.

Dividends

Payments made by a corporation to its shareholders, typically from profits, as a distribution of earnings.

Required Return

The minimum expected return an investor demands for holding a particularly risky investment.