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Common stock is the principal way that corporations raise ____.
A) short-term debt
B) foreign exchange
C) long-term debt
D) equity capital
Answer: D
Diff: 1 Type: MC Page Ref: 138
Skill: Recall
Objective List: 7.1 Illustrate how stocks are valued as the present value of dividends
Dividends are paid from ____.
A) liabilities
B) debts
C) net earnings
D) interest
Answer: C
Diff: 1 Type: MC Page Ref: 138
Skill: Recall
Objective List: 7.1 Illustrate how stocks are valued as the present value of dividends
Periodic payments of net earnings to shareholders are known as ____.
A) capital gains
B) dividends
C) profits
D) interest
Answer: B
Diff: 1 Type: MC Page Ref: 138
Skill: Recall
Objective List: 7.1 Illustrate how stocks are valued as the present value of dividends
The value of any investment is found by computing the ____.
A) present value of all future sales
B) present value of all future liabilities
C) future value of all future expenses
D) present value of all future cash flows
Answer: D
Diff: 1 Type: MC Page Ref: 138
Skill: Recall
Objective List: 7.1 Illustrate how stocks are valued as the present value of dividends