How Is the Multiplier Expressed in Terms of the MPS

question 167

Multiple Choice

How is the multiplier expressed in terms of the MPS?

• A) 1 - MPS
• B) 1/MPS
• C) 1/(1 - MPS)
• D) 1/(1 + MPS)

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Definitions:

Cash Dividend

A distribution of profits by a corporation to its shareholders in the form of cash.

Stock Dividend

A dividend payment made to shareholders in the form of additional shares of stock, rather than cash.

Retained Earnings

Profit that remains after dividends are paid, which is reinvested in the company or used to pay off debt.

Treasury Stock

Shares of a company's own stock that it has reacquired but not retired, which do not pay dividends and have no voting rights.