An Increase in ________ Will Increase Common Equity

question 66

Multiple Choice

An increase in ________ will increase common equity.

• A)paid in capital
• B)retained earnings
• C)dividends paid
• D)both A and C
• E)all of the above

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Definitions:

Market Rate

The prevailing interest rate available in the marketplace.

Individual Security

A particular financial instrument such as a stock or bond representing an ownership or creditor relationship with a corporation or governmental entity.

Portfolio Beta

A measure of the volatility, or systematic risk, of a portfolio of investments compared to the market as a whole.

Individual Securities

are financial instruments such as stocks or bonds that are owned directly by investors, as opposed to being part of a pooled investment.