If We Divide Both Sides of the Equation $R = \frac { \text { dividend } } { P _ { S } } + \frac { \Delta P _ { S } } { P _ { S } }$

question 40

Multiple Choice

If we divide both sides of the equation $R = \frac { \text { dividend } } { P _ { S } } + \frac { \Delta P _ { S } } { P _ { S } }$ by earnings, we get:

• A) the price-earnings ratio
• B) the equilibrium interest rate
• C) firm capital gains/losses
• D) the marginal product of capital
• E) inflation-adjusted prices

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Definitions:

Sellers Receive

Refers to the revenue or payment that sellers get in exchange for providing goods or services in a market.

Tax

Mandatory financial contributions imposed by a government on individuals, corporations, or goods to fund public expenditures.

Tax Burden

The measure of the total amount of taxes imposed by government on individuals, corporations, goods, and services, affecting the income and purchasing power of taxpayers.