This Calculation Includes the Annual Dividends in Dollars and the Increase

question 94

Multiple Choice

This calculation includes the annual dividends in dollars and the increase in the original purchase price of the investment.

• A) Book value
• B) Capital gain
• C) Market value
• D) Price-earnings ratio
• E) Total return

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Definitions:

Stockholders' Equity

Stockholders' equity represents the residual interest in the assets of a corporation, after deducting its liabilities. It is also known as shareholders' equity.

Liabilities

Liabilities represent obligations or debts that a company owes to external parties, which must be settled through the transfer of assets or services.

Assets

Economic resources owned by a business or individual, expected to bring future benefits.

Net Income

The total profit or loss of a business after all expenses, taxes, and costs have been subtracted from total revenue.