An Example of an Investing Activity Is

question 189

Multiple Choice

An example of an investing activity is:

• A)Paying wages of employees.
• B)Dividends paid to stockholders.
• C)Purchase of land.
• D)Selling inventory.
• E)Investments by stockholders in exchange for common stock.

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Definitions:

Market-capitalization Rate

A valuation metric that assesses the total value of a company's outstanding shares by multiplying the stock price by the total number of shares.

Plowback Ratio

A financial metric indicating the proportion of earnings retained by a company after dividends are paid, used for reinvestment into business operations.

Expected ROE

The projected return on equity for a future period, based on estimates of future earnings and shareholders' equity.

Risk-free Rate

An anticipated earning on an investment that is free from the danger of monetary loss, commonly illustrated by the return rate on state-issued securities.