Which One of the Following Statements Is Correct

question 117

Multiple Choice

Which one of the following statements is correct?

• A)The capital gains yield is the annual rate of change in a stock's price.
• B)Preferred stocks have constant growth dividends.
• C)A constant dividend stock cannot be valued using the dividend growth model.
• D)The dividend growth model can be used to compute the current value of any stock.
• E)An increase in the required return will decrease the capital gains yield.

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Definitions:

Stress Protection

Strategies or factors that shield individuals from the negative effects of stress.

External Locus

Refers to the belief that outside forces, rather than personal actions, control one's life circumstances.

Locus of Control

A psychological concept that refers to individuals’ beliefs about the extent to which their actions influence the rewards and consequences they experience.

Stable Worldview

A consistent and unchanging perspective or set of beliefs about the world and one's place within it.