You Have Just Purchased 100 Shares of the Stock of Microsoft

question 274

Multiple Choice

You have just purchased 100 shares of the stock of Microsoft Corporation. This places you in the role of

• A) principal.
• B) incentive system operator.
• C) agent.
• D) long-term contractor.

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Definitions:

Expected Capital Gains Yield

The forecasted price appreciation on an investment or asset, typically expressed as an annual percentage.

Constant Growth Model

A method to value a stock by assuming that dividends grow at a constant rate indefinitely.

Capital Gains

The profit earned from the sale of a capital asset, such as stocks, bonds, or real estate, where the sale price exceeds the purchase price.

Dividend Growth Rate

The annualized percentage rate of growth of a company's dividend payments.