Which of the following statements concerning the required rate of return on stocks is true?
A) If risk is reduced, the required return will decrease because more investors are risk-averse.
B) The higher the risk, the higher the required return, other things being equal.
C) The required return on preferred stock is generally higher than the required return on
common stock.
D) The higher an investor's required rate of return, the higher the value of the stock.
B
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If the rent on an apartment is $600 per month, which is equal to a mortgage payment on a house, how much additional tax savings will you realize if $200 of the monthly mortgage payment is interest and your tax bracket is 25%?
A) $50 B) $600 C) $2,500 D) $7,200
According to path-goal theory, directive behavior lets subordinates know what tasks need to be performed and how they should be performed
Indicate whether the statement is true or false