Dividing the dividend payment by the stock's ________ determines ...

[Kikoku]

Dividing the dividend payment by the stock's ________ determines the dividend yield.
 
  A) closing market price B) highest yearly price
  C) coupon payment D) price/earnings ratio

Question 2

Describe briefly how the final value of an iPhone must be equal to the sum of incomes generated by the production of the iPhone.
 
  What will be an ideal response?

[LegendaryAnswers]

Answer to Question 1

A

Answer to Question 2

Consider the value of an iPhone which costs 200. Part of the 200 goes to Apple in the form of profit. Part of the 200 goes to the firms that sold Apple the parts that made up the iPhone. Part of the 200 goes to the workers that built the iPhone. A portion of the 200 goes to pay the sales clerk who sells the iPhone. Part of the 200 goes to the trucking company that shipped the iPhone. In fact, all of the value of the 200 ends up as income for someone in the economy. If we extend this idea to the entire economy and add up the value of all goods and services, then the total will equal the total amount of income in the economy.

[Kikoku]

Gracias!

[mcabuhat]

Thanks for the timely response, appreciate it