The Expected Return on a Common Stock Is Composed Of

question 69

Multiple Choice

The expected return on a common stock is composed of:

• A) dividend yield.
• B) capital appreciation.
• C) both dividend yield and capital appreciation.
• D) capital appreciation minus the dividend yield.

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Definitions:

Financial Data Across Time

Refers to historical financial statistics, such as revenue, profits, and expenses, tracked over different periods to analyze trends and performance.

Vertical Analysis

A method of financial statement analysis in which each entry on a single financial statement is listed as a percentage of another item, typically used to assess relative changes over time within the statement.

Base Year

A specific year or period chosen as a reference point for financial or economic data analysis.

Percent Change

A mathematical calculation that indicates the degree of change over time, represented as a percentage.