An Intermediate-Term Investment Objective Is Defined as One That Will

question 59

Multiple Choice

An intermediate-term investment objective is defined as one that will be accomplished within a period of:

• A) five to ten years.
• B) two to five years.
• C) more than five years.
• D) one to five years.
• E) less than one year.

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Definitions:

Liquidating Dividend

A type of dividend paid by a company that is returning a portion of the capital to its shareholders, typically during dissolution.

Price/earnings Ratio

The Price/Earnings Ratio (P/E Ratio) is a valuation metric that compares the current share price of a company to its per-share earnings, used by investors to evaluate the investment attractiveness of a company.

Excess Cash

Refers to the amount of cash a company holds that is beyond what it requires for day-to-day operations and investments.

Dividend

The distribution of a portion of a company's earnings, decided by the board of directors, to a class of its shareholders. Dividends can be issued as cash payments, as shares of stock, or other property.