Which of the Following Investments Represents Partial Ownership of a Corporation

question 29

Multiple Choice

Which of the following investments represents partial ownership of a corporation?

• A) bonds
• B) mutual funds
• C) commercial paper
• D) common stock

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Definitions:

Eps Growth Rate

The annual rate at which a company's earnings per share (EPS) has grown over a specified time period.

Rate Of Return

The gain or loss of an investment over a certain period, expressed as a percentage of the investment's initial cost.

Npvgo

Net Present Value of Growth Opportunities; a measure evaluating the profitability of future investments by comparing their present value to the initial outlay.

Required Return

The minimum annual return rate that incites people or companies to allocate resources to a particular investment or project.