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:

Eight Ages of Social Development

Erik Erikson's theory that proposes eight stages of human development, each characterized by a different psychological conflict that must be resolved.

Hierarchy of Needs

A psychological theory proposed by Abraham Maslow that is often depicted as a pyramid with five levels of needs, ranging from basic physiological needs at the bottom to self-actualization at the top.

Cognitive Dissonance

A psychological discomfort experienced when holding two or more conflicting cognitions (ideas, beliefs, values, or emotional reactions).

Collective Unconscious

A concept in Jungian psychology referring to the part of the unconscious mind shared among beings of the same species, housing archetypes.