Ordinary Gains from the Sale of Fixed Assets Should Be

question 30

True/False

Ordinary gains from the sale of fixed assets should be reported in the other income section of the income statement.

---

Definitions:

Rational Security Pricing

The concept that the market prices of securities reflect all available information and are valued accordingly in an efficient way.

Constant-growth Dividend-discount Model

A method for valuing a stock by assuming that dividends grow at a constant rate indefinitely, used to estimate the stock's price based on future dividend payments.

Multifactor CAPM

Generalization of the basic CAPM that accounts for extra-market hedging demands.

APT

The Arbitrage Pricing Theory, a multifactor model used to determine asset returns based on the relationship between a financial asset's expected return and its risks.