Charlize Has Asked You for Advice on How to Live

question 273

Multiple Choice

Charlize has asked you for advice on how to live a happy,effective life.Which of the following is NOT something that you would suggest?

• A) "Make sure you get enough sleep each night."
• B) "Spend some time each day doing aerobic activity."
• C) "Maintain close relationships with others."
• D) "Avoid making long-term goals right now."

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Definitions:

Earnings Retention Ratio

The earnings retention ratio, also known as the plowback ratio, measures the percentage of net income that is retained in the company rather than being paid out as dividends.

Market Capitalization Rate

Market capitalization rate, or "cap rate", is used in evaluating and comparing the expected returns on investments in the equity market, reflecting the cost of capital for a company.

P/E Ratio

The price-to-earnings ratio, a valuation metric calculated by dividing the current market price of a stock by its earnings per share.

Dividend Plowback Ratio

The portion of a company's earnings that is not distributed as dividends but is reinvested in the business, also known as the retention rate.