Corporate owners receive return ________.
A) by realizing gains through increases in share price and interest earnings
B) by realizing gains through increases in share price and cash dividends
C) through capital appreciation and retained earnings
D) through interest earnings and earnings per share

Question

Quizplus · Accepted Answer

Corporate owners, i.e. shareholders, receive returns on their investment in the form of dividends as well as an increase in share price. While capital appreciation and retained earnings contribute to the increase in share price, cash dividends provide a direct return to shareholders. Therefore, option B is the best choice as it includes both increases in share price and cash dividends.

Corporate Owners Receive Return ________