The dividend payout ratio, the required rate of return on common equity, and the expected growth rate of stock dividends are the major variables that affect
a. The profit margin for the S&P Industrials Index.
b. The earnings multiplier for common stock.
c. Aggregate tax revenues.
d. Capital gains tax revenues.
e. Aggregate GDP.
B
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The Norticon Group provides and manages computers and network systems for businesses and communities
Norticon sells its products through various means–it uses its sales force to sell to large customers and telemarketing to sell to smaller customers. The company also sells its products via the Internet. Briefly explain the marketing approach being used by the company.
Equity valuation models based on dividends, cash flows, and earnings have been the topic of many theoretical and empirical research studies in recent years. All of the following are true regarding these studies except:
a. share prices in the capital markets generally correlate closely with share value b. share prices do not always equal share values c. temporary deviations of price from value occur d. unexpected changes in earnings, dividends, and cash flows do not correlate closely with changes in stock prices
The sum of reportable segment sales must be a least equal to what percent of total company sales?
a. 100% b. 75% c. 50% d. 65%
Dag runs a hardware store. He learned that customers process the price of $9.99 as significantly lower than the price of $10.00 because of the reduced digit count in the price point. Accordingly, he follows this rule to set up the prices for all products. Dag uses a ________ strategy.
A. psychological pricing B. high/low pricing C. everyday low pricing (EDLP) D. one-price strategy E. variable pricing