Which of the Following Will Be a Source of Cash

question 2

Multiple Choice

Which of the following will be a source of cash flows for a shareholder of a certain stock?
I. Sale of the shares at a future date
II. The firm in which the shares are held paying out cash to shareholders in the form of dividends
III. The firm in which the shares are held increasing the total number of shares outstanding through a stock split

• A) I only
• B) II only
• C) I and II
• D) II and III

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Definitions:

Verbal Memory

The ability to remember and recall words and other verbal items; a component of cognitive functioning related to the processing and use of language.

Inductive Reasoning

A logical process in which multiple premises, all believed true, are combined to obtain a specific conclusion.

Longitudinal Research

A research design that follows the same individuals over time.

Cross-sectional Research

A research method that involves analyzing data from a population, or a representative subset, at a specific point in time to identify trends and patterns.