Which of the Following Statements Is FALSE

question 17

Multiple Choice

Which of the following statements is FALSE?

• A)Future dividend payments and stock prices are not known with certainty;rather these values are based on the investor's expectations at the time the stock is purchased.
• B)The capital gain is the difference between the expected sale price and the purchase price of the stock.
• C)The sum of the dividend yield and the capital gain rate is called the total return of the stock.
• D)We divide the capital gain by the expected future stock price to calculate the capital gain rate.

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Definitions:

Authority

The capability or entitlement to direct, determine outcomes, and mandate adherence.

Contract

A contract recognized and upheld by law, which involves two or more parties entering into an agreement with legal obligations.

Power of Attorney

A legal document that allows one person to act on another's behalf, often in financial or health-related matters.

Equal Dignity Rule

A legal principle that requires certain contracts or agreements made by agents on behalf of a principal to be in writing if the contract itself must be in writing.