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Which of the following statements is FALSE? A. Future dividend payments and stock prices are not known with certainty; rather these values are based on
Which of the following statements is FALSE?
A. | Future dividend payments and stock prices are not known with certainty; rather these values are based on the investors expectations at the time the stock is purchased. | |
B. | The capital gain is the difference between the expected sale price and the purchase price of the stock. | |
C. | The sum of the dividend yield and the capital gain rate is called the total return of the stock. | |
D. | We divide the capital gain by the expected future stock price to calculate the capital gain rate.
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