Dividing a stock's earnings per share by the expected rate of return will value the share correctly if no new shares are issued and the dividend yield:
A) is zero.
B) is constant.
C) exceeds the required return.
D) equals the required return.
Ans: A) is zero.
Business
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Which of the following types of compensation scheme should be used when management is more interested in long-term goals rather than simply selling as much volume as possible?
A) a straight commission B) a straight salary C) a trade allowance D) an incentive payment
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The security agreement establishes the lenders interest in the purchased good
Indicate whether the statement is true or false.
Business