The Total Return of a Stock Is Equal to

question 6

Multiple Choice

The total return of a stock is equal to

• A) the dividend yield plus the capital gain.
• B) the capital gain plus the rate of return.
• C) the dividend yield plus the required rate of return.
• D) the dividend yield plus the capital gain rate.

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Definitions:

Revenues

Inflows of assets or settlements of liabilities from the company's primary operations, typically from sales of goods or services.

Debits

Accounting entries that increase assets or expenses or decrease liabilities, equity, and revenue.

Double-entry Accounting System

An accounting technique which records each transaction as both a credit and a debit in different accounts, ensuring the accounting equation remains balanced.

Journal

A record where all financial transactions are initially documented in chronological order.