In the following list, which three factors influence the capital gain component of a growth company? (1) The firm's expected rate of growth of earning per share
(2) The amount of capital invested in growth investments
(3) The rate of return earned on the funds relative to the required rate of return
(4) The required rate of return on the security based on its systematic risk
(5) The firm's dividend payout ratio
(6) The time horizon when these growth investments will be available
A) (1) , (3) and (5)
B) (2) , (3) and (4)
C) (2) , (3) and (6)
D) (3) , (4) and (5)
E) (3) , (4) and (6)
Correct Answer:
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