Common Stockholders Expect to Receive a Return Through Capital Gains

question 16

Multiple Choice

Common stockholders expect to receive a return through capital gains and

• A) interest payments.
• B) dividends.
• C) fixed periodic dividends.
• D) coupon payments.
• E) receiving shares of preferred stock

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Definitions:

Intuiting

The ability to understand or know something immediately, without the need for conscious reasoning; a gut feeling or instinct.

Cognitive Dissonance

A psychological discomfort experienced when an individual holds two or more contradictory beliefs, ideas, or values at the same time.

Escalation

The process of something becoming or being made more intense, severe, or serious.

Optimism

A mental attitude reflecting a belief or hope that the outcome of some specific endeavor, or outcomes in general, will be positive, favorable, and desirable.