If a Share Is Correctly Priced Then You Know That

question 24

Multiple Choice

If a share is correctly priced then you know that ________.

• A)the dividend payout ratio is optimal
• B)the share's required return is equal to the growth rate in earnings and dividends
• C)the sum of the share's expected capital gain and dividend yield is equal to the share's required rate of return
• D)the present value of growth opportunities is equal to the value of assets in place

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Definitions:

Spatial Concepts

The understanding and cognitive processing of how objects or features are located in space relative to one another.

Visual Relationships

The way visual elements are perceived in relation to each other and the overall composition in a visual field.

Relational-Organizational Hypothesis

The theory that complex information is remembered better when it is organized in a meaningful relational manner.

Method Of Loci

A mnemonic technique that involves associating items to be remembered with specific physical locations.