Refer to Closing Case - Can Anyone Succeed with Local

question 2

Multiple Choice

Refer to Closing Case - Can Anyone Succeed with Local, Online Advertising? The main challenge for Yelp's profitability is

• A) Lack of customer participation
• B) Lack of paying clients
• C) Competition from Google and Facebook
• D) (a) and (b) only

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Definitions:

Dividend Yield

The ratio that indicates how much dividends a company issues each year in relation to the price of its shares.

Par Value

Par value is the nominal or face value of a bond, share, or other financial instrument, set at the time of issue.

Dividend Growth Model

A method for valuing a stock by using predicted dividends and discounting them back to their present value.

Dividend Growth Rate

The annualized percentage rate of growth of a company's dividend payments, indicating how quickly dividends are increasing over time.