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Question
Which of the following dividend policies would cause dividends per share to fluctuate the most?A) Residual dividend policy
B) Stable dollar dividend
C) Small, low, regular dividend plus a year-end extra
D) Small, low, regular dividend
Answer
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Related questions
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The equivalent annual cost method is most appropriate in which of the following situations? In each case, assume that several mutually exclusive options are available.
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The size of capital investments and the difficulty in reversing them once they are made make capital-budgeting decisions very important to the firm.
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Competitive market forces make it imperative for a firm to have a systematic strategy for generating capital-budgeting projects.
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Good capital investment opportunities are most likely to exist when:
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P/E ratios found in published sources or on the internet are always computed by dividing the next period's expected earnings into the current price of the stock.
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Q:
If the ROE on a new investment is less than the firm's required rate of return:
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By virtue of its nature, dividend policy is inherently a wealth-creating activity for the firm's owners.
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The dividend declaration date is the date at which the stock transfer books are to be closed for determining the investor to receive the next dividend payment.
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The ________ designates the date on which the stock transfer books are closed in regard to a dividend payment.
A) declaration date
B) ex-dividend date
C) date of record
D) payment date
Q:
Five years ago, Mr. Martinez purchased 1000 shares of JPM stock at $50 per share. If Mr. Martinez ' tax rate is 25% would he prefer that the company pay a $5.00 per share dividend or offer to repurchase 100 shares at $50 per share?
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B) It would make no difference because he would receive $5,000 either way.
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For accounting purposes, a stock split has been defined as a stock dividend exceeding:
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A stock dividend will cause changes in the dollar value of which of the below capital accounts?
A) Common stock
B) Additional paid-in capital
C) Retained earnings
D) All of the above
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A) There is not enough information to know.
B) EPS will increase by 10%.
C) EPS will not be affected by the stock dividend.
D) EPS will decrease by 10%.