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

Correct answer: A. return

  • A. return
  • B. equity
  • C. spot rate contracts
  • D. forward rate contractsStocks & Bonds

Explanation

An investor’s total return from stock consists of capital gains plus dividends or other periodic income. Equity and spot or forward contracts are instruments or classifications, not the combined result of these two components.

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Business finance explains how organisations plan, obtain and use money while balancing risk, return and liquidity. Topics include financial statements, time value of money, budgeting, working capital, capital structure, sources of finance, investment appraisal and cost of capital. Capital budgeting evaluates long-term projects, whereas working capital manages day-to-day operations.

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