Economics Today and Tomorrow, Student Edition
1st Edition
ISBN: 9780078747663
Author: McGraw-Hill
Publisher: Glencoe/McGraw-Hill School Pub Co
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Question
Chapter 8, Problem 8AA
To determine
To ascertain the term that best completes each sentences.
Expert Solution & Answer
Explanation of Solution
A company’s profits will generate dividends for its stockholders.
Because dividends are a source of cash flow to the investor, they are a significant representation of the valuation of a business. It is also important to remember that dividend stocks are less likely to reach unsustainable values. In addition to capital appreciation it offers a source of income. Plus, some investors like their dividends reinvested. When doing so, the money you earn in cash outs is immediately used to buy more stock. So, the answer is generate.
Economics Concept Introduction
Introduction: Dividends, based on the number of shares owned in the corporation, reflect the allocation of corporate profits to shareholders. Shareholders want to return money to the businesses they invest in.
Chapter 8 Solutions
Economics Today and Tomorrow, Student Edition
Ch. 8.1 - Prob. 1RCh. 8.1 - Prob. 2RCh. 8.1 - Prob. 3RCh. 8.1 - Prob. 4RCh. 8.1 - Prob. 5RCh. 8.2 - Prob. 1RCh. 8.2 - Prob. 2RCh. 8.2 - Prob. 3RCh. 8.2 - Prob. 4RCh. 8.2 - Prob. 5R
Ch. 8.3 - Prob. 1RCh. 8.3 - Prob. 2RCh. 8.3 - Prob. 3RCh. 8.3 - Prob. 4RCh. 8.3 - Prob. 5RCh. 8 - Prob. 1AACh. 8 - Prob. 2AACh. 8 - Prob. 3AACh. 8 - Prob. 4AACh. 8 - Prob. 5AACh. 8 - Prob. 6AACh. 8 - Prob. 7AACh. 8 - Prob. 8AACh. 8 - Prob. 9AACh. 8 - Prob. 10AACh. 8 - Prob. 11AACh. 8 - Prob. 12AACh. 8 - Prob. 13AACh. 8 - Prob. 14AACh. 8 - Prob. 15AACh. 8 - Prob. 16AACh. 8 - Prob. 17AACh. 8 - Prob. 18AACh. 8 - Prob. 19AACh. 8 - Prob. 20AACh. 8 - Prob. 21AACh. 8 - Prob. 22AACh. 8 - Prob. 23AA
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