The Expected Return on an Equity Security Is Comprised of A

question 93

Multiple Choice

The expected return on an equity security is comprised of a:

• A)dividend yield and ROE.
• B)current yield and a terminal value.
• C)sustainable growth rate and a plowback yield.
• D)dividend yield and a capital gains yield.

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Definitions:

Long-Term Liabilities

Company debts that are payable beyond a year from now.

Capital Leases Payable

The liability account that records the present value of future lease payments for assets obtained through capital leases.

Unearned Revenues

Money received by a company for goods or services yet to be delivered or performed.

Working Capital

The difference between a company's current assets and current liabilities, indicating the short-term financial health of the business.