Quiz on Lesson ” What Is Income Investing “

What is income investing and how does it help with retirement planning?

A. Income investing involves buying high-risk stocks for quick returns

B. Income investing involves purchasing stable stocks and bonds that pay dividends and coupons, which can provide a source of income for retirement

C. Income investing involves buying stocks and bonds without any regard for potential returns

What are some techniques for selecting income investing stocks?

A. Finding companies with high debt-to-equity ratios and no dividend payments

B. Finding companies with low debt-to-equity ratios and stable dividend payments

C. Finding companies with high debt-to-equity ratios and volatile stock prices

What is the recommended ratio for finding companies that pay dividends and reinvesting earnings back into the business?

A. One-half of earnings should be paid out as dividends, with the remaining half reinvested back into the business

B. One-third of earnings should be paid out as dividends, with the remaining two-thirds reinvested back into the business

C. All earnings should be paid out as dividends to generate a maximum source of income.

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