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Question
Last year Universal Transportation retained $225,000 of the $750,000 net income it generated. This year Universal generated net income equal to $550,000. If Universal follows the constant payout ratio dividend policy, how much should it pay in total dividends this year?
a. $550,000
b. $385,000
c. $165,000
d. $715,000
e. $525,000
Answer
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Related questions
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b. annuity due
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Q:
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Q:
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Q:
Which of the following agreements is included in the Basel III Accord (2010)?
a. Agreement to increase banks' capital (owners' equity) requirements in an effort to reduce the risk that mega bank failures will cause future financial crises
b. Agreement to put restrictions on the ability of the U.S. government to use taxpayers' funds to bail out large financial institutions
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Q:
Which of the following is true about financial institutions in the United States compared to those in other countries?
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Q:
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Q:
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Q:
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When issuing new securities, which of the following decisions is made jointly by a corporation and its investment banker?
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b. Deciding which investment banker to use
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Q:
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Q:
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Q:
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Q:
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a. True
b. False
Q:
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a. True
b. False
Q:
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a. True
b. False
Q:
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a. True
b. False
Q:
Dual listing of a stock leads to a decrease in the marketability of the stock.
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Q:
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a. True
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Q:
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b. Wall Street Transparency and Accountability Act
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Q:
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a. True
b. False
Q:
The Securities and Exchange Commission (SEC) was created to develop and approve a set of common international accounting rules.
a. True
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a. True
b. False
Q:
All firms that are publicly traded in the United States will be required to adopt the _____ in the near future.
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c. Governmental Accounting Standards Principles (GASP)
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Q:
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c. The current ratios of both firms will be decreased.
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e. Only Ruby Company's current ratio will be increased.
Q:
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b. Firms with relatively low debt ratios are exposed to more risk compared to firms with relatively high debt ratios.
c. Firms with relatively high debt ratios have higher expected returns when business is bad.
d. Firms with relatively high debt ratios have higher expected returns when business is good.
e. Firms with relatively low debt ratios have higher expected returns when business is poor.