Total shareholder return is calculated by:
A) comparing the dividends received by shareholders and the increase in the share price with the original shareholder investment
B) discounting estimated future cash flows to their present values using the cost of capital
C) deducting the total capital invested in the business from the total market capitalization
D) deducting from net operating profit a charge to cover the opportunity cost of the capital invested in the business
Correct Answer:
Verified
Q1: Equity refers to
A) Economic fairness
B) Funds from
Q2: The cost of debt is
A) Interest
B) Dividend
C)
Q3: According to Rappaport (1998), the focus of
Q4: Value-based management emphasizes shareholder value, because this
Q5: The difference between total market capitalization and
Q7: For shareholder value to be created, a
Q8: According to Rappaport (1998), the main drivers
Q9: A detrimental consequence of the emphasis on
Q10: Which of the following statements is true?:
A)
Q11: Decisions made using management accounting information are
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