The Total Rate of Return on a Stock Can Be

question 52

Multiple Choice

The total rate of return on a stock can be positive even when the price of the stock depreciates because of the:

• A)capital appreciation.
• B)real rate of return.
• C)interest yield.
• D)supernormal growth.
• E)dividend yield.

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Definitions:

Cash Sales

Revenue received from transactions where payment is made immediately in cash.

Collections

The process of pursuing and receiving payments on outstanding accounts receivable from customers.

Payments

The act of transferring money or money's worth from one party to another as a settlement for a transaction or an obligation.

Cash Receipts

Money received by a business, recorded in its financial statements, typically from transactions such as sales or services rendered.