Periodic payments of net earnings to shareholders are known as

A$)$ capital gains.

B$)$ dividends.

C$)$ profits.

D$)$ interest.

In the generalized dividend model, a future sales price far in the future does not affect the current stock price because

A$)$ the present value cannot be computed.

B$)$ the present value is almost zero.

C$)$ the sales price does not affect the current price.

D$)$ the stock may never be sold.

A plot of the interest rates on default$-$free government bonds with different terms to maturity is called

A$)$ a risk$-$structure curve.

B$)$ a default$-$free curve.

C$)$ a yield curve.

D$)$ an interest$-$rate curve.

Using the Gordon growth model, a stock's current price decreases when A$)$ the dividend growth rate increases.

B$)$ the required return on equity decreases.

C$)$ the expected dividend payment increases.

D$)$ the growth rate of dividends decreases.