In the calculation of rates of return on common stock, dividends are _______ and capital gains are ______.
A)Guaranteed; not guaranteed
B)Guaranteed; guaranteed
C)Not guaranteed; not guaranteed
D)Not guaranteed; guaranteed

Question

Quizplus · Accepted Answer

Dividends and capital gains are both not guaranteed. Dividends depend on the company's decision to distribute profits, and capital gains depend on the stock's market performance.

In the Calculation of Rates of Return on Common Stock