Shareholders wealth consists of two sources:
A) Dividends and share price
B) Profit and share price
C) ROCE and dividends
D) Growth and dividends

Question

Quizplus · Accepted Answer

Shareholders' wealth refers to the value that shareholders receive from their investments in a company. This value can come from two sources: dividends and the share price. Dividends are periodic payments made by the company to its shareholders from the profits earned. The share price, on the other hand, represents the market value of each share of the company's stock. The higher the share price, the greater the wealth of the shareholders. Therefore, the best choice is option A.

Shareholders Wealth Consists of Two Sources