When the earnings are reinvested instead of payments of dividends, then the capital gains ___________?

Related Mcqs:

1. The capital gains and dividends are considered as components of __________?

   A. return
   B. equity
   C. spot rate contracts
   D. forward rate contracts

2. The type of preferred stock whose paid dividends are more than the promised dividends is classified as ____________?

   A. non-cumulative preferred stock
   B. cumulative preferred stock
   C. non participating preferred stock
   D. participating preferred stock

3. The capital gain is 9% and the return to stockholder is 18% then the periodic payments of dividends are __________?

   A. 0.18
   B. 0.27
   C. 0.25
   D. 0.09

4. The return to stockholders is 15% and the periodic dividend payments are 11.5% then the gains on capital are ___________?

   A. 0.0265
   B. 0.035
   C. 0.013
   D. 0.043

5. The sum of capital gains and dividend payments which are paid to stock holders on periodic basis is equal to ___________?

   A. return to common stockholders
   B. return on premium bonds
   C. return to stock holder
   D. return to preferred stock

6. The capital gains are 14% and the periodic payments to stock holder are 11% then the return on stock investment for stock holder is __________?

   A. 0.3
   B. 0.24
   C. 0.25
   D. 0.15

7. The type of preferred stock whose payments are missed and must be paid before paying dividends of common stock is classified as ___________?

   A. non participating preferred stock
   B. participating preferred stock
   C. non-cumulative preferred stock
   D. cumulative preferred stock

8. The periodic payments of dividends are subtracted from return to stockholders to calculate ____________?

   A. gain on spot contract
   B. loss on spot contract
   C. gain on capital
   D. loss on capital

9. The type of swaps in which the fixed payments of interest are exchanged by two counterparties for floating payments of interest are called _________?

   A. float-fixed swaps
   B. interest rate swaps
   C. indexed swaps
   D. counter party swaps

10. The residual claims, limited rights, limited liability and dividend payments on discrete basis are considered as ____________?

    A. characteristics of fundamental stock
    B. characteristics of claimed stock
    C. characteristics of common stock
    D. characteristics of preferred stock