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1. Introduction to Accounting1h 21m
2. Transaction Analysis1h 13m
3. Accrual Accounting Concepts2h 38m
4. Merchandising Operations2h 30m
5. Inventory1h 55m
6. Internal Controls and Reporting Cash1h 16m
7. Receivables and Investments3h 8m
8. Long Lived Assets5h 1m
9. Current Liabilities2h 19m
10. Time Value of Money1h 23m
- Time Value of Money Equations
  35m
- Using Time Value of Money Tables
  47m
11. Long Term Liabilities2h 45m
12. Stockholders' Equity2h 15m
13. Statement of Cash Flows2h 24m
14. Financial Statement Analysis5h 25m
15. GAAP vs IFRS56m

7. Receivables and Investments

Introduction to Investments in Securities

Financial Accounting

7. Receivables and Investments

Introduction to Investments in Securities

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Multiple Choice

In the dividend discount model (DDM), the expected return for investors comes from which two sources?

Dividend yield and capital gains

Capital gains and bond coupon payments

Interest income and capital gains

Dividend yield and interest income

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Verified step by step guidance

Understand the Dividend Discount Model (DDM): The DDM is a method used to value a company's stock by assuming that the stock's value is equal to the present value of all its future dividend payments.

Identify the sources of return for investors in the DDM: The expected return for investors comes from two primary sources: dividend yield and capital gains.

Define dividend yield: Dividend yield is the annual dividend payment divided by the current stock price, representing the income investors receive from dividends.

Define capital gains: Capital gains refer to the increase in the stock's price over time, which investors realize when they sell the stock at a higher price than they purchased it.

Eliminate incorrect options: Bond coupon payments and interest income are not relevant to the DDM, as the model focuses on dividends and stock price appreciation.