Sellers Allow Customers to Use Credit Cards

question 39

Multiple Choice

Sellers allow customers to use credit cards:

• A) To avoid having to evaluate a customer's credit standing for each sale.
• B) To lessen the risk of extending credit to customers who cannot pay.
• C) To speed up receipt of cash from the credit sale.
• D) To increase total sales volume.
• E) All of these.

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Definitions:

Dividend Payout Ratio

A financial metric that measures the percentage of a company's earnings paid out to shareholders as dividends.

Earnings Per Share

Earnings per share (EPS) is a company's profit divided by the outstanding shares of its common stock, indicating the company's profitability on a per-share basis.

Share Price

The present cost for purchasing or selling a single unit of a corporation's stock.

Constant-Growth DDM

A dividend discount model that assumes dividends grow at a constant rate in perpetuity, used to estimate the value of a stock.