When Analyzing Stocks,the Major Variable of Interest to a Majority

question 58

Multiple Choice

When analyzing stocks,the major variable of interest to a majority of investors is:

• A)sales.
• B)profit margins.
• C)dividend yield.
• D)earnings per share.

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Definitions:

Dividend Growing

The increase in the amount of dividend payouts by a company over time.

Current Yield

The annual income (interest or dividends) divided by the current price of the security, often used to assess the return on investment in bonds.

Required Rate

The minimum expected rate of return by investors for providing capital to a company, often used in valuing investments.

Constant Dividend

A fixed amount of money paid to shareholders of a corporation out of its earnings on a regular basis.