The Value of Common Stock Will Likely Decrease If

question 93

Multiple Choice

The value of common stock will likely decrease if:

• A) the investment horizon decreases.
• B) the growth rate of dividends increases.
• C) the discount rate increases.
• D) dividends are discounted back to the present.

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Definitions:

Intrinsic Motivation

The drive to perform activities for their own sake and for the personal rewards they bring, rather than for external rewards.

Extrinsic Motivation

A form of motivation driven by external rewards, such as money, grades, or recognition, rather than by inherent interest in the activity itself.

Autonomous Motivation

Self-motivation or intrinsic motivation that occurs when people feel they are in control of their motivation.

Controlled Motivation

Motivation that is externally controlled, such as when one is motivated to obtain a desired consequence or extrinsic reward.