Self test multiple choice questions Click the chapter links below to test your knowledge of each topic. Suppose this firm declares a 2-for-1 stock split. Free PDF Download of CBSE Accountancy Multiple Choice Questions for Class 12 with Answers Chapter 7 Issue of Shares. Find out more, read a sample chapter, or order an inspection copy if you are a lecturer, from the Higher Education website I gave them the work but I still had doubts in my mind. A) Payment of Dividends. The feeling was so amazing and this became possible because of you guys. Dynamic Tutorials and Services is a Leading Coaching Centre of Tinsukia District. 195.A memory buffer used to accommodate a speed differential is called a) stack pointer b) cache c) accumulator d) disk buffer Answer:b. Explain the term cash dividend. taxable to the shareholder. That d ividend policy has resulted in dividends per share of $1.28, $1.20, and $2.20 for the past three years. View ANSWERS for MCQ on DIVIDEND POLICY.docx from BWFF 2043 at Universiti Utara Malaysia. C) Marginal corporate tax rates exceed marginal personal tax rates. Dividend Policy MCQs On December 1, Noble Inc.’s Board of Directors declared a property dividend, payable in stock held in the Multon Company. If the marginal tax rate on capital gains is equal to the marginal tax rate on income, a tax-conscious investor will: A) Prefer a low dividend payout because the after-tax return to the shareholder will be greater. If marginal corporate tax rates exceed marginal personal tax rates. Under NYSE rules, if you bought 500 shares of the stock on Friday, January 4 for $7.50 per share, how much will you receive in dividends? Types of financial institutions b. Just click the “start quiz” button and start dividend and bonus MCQs quiz. Best quality guarantee : All our experts are pro of their field which ensures perfect assignment as per instructions. What is the dividend for the 4th quarter? If it uses the residual dividend model, how much total dividends, if any, will it pay out? 2 year B. 8. A) Issue of Debenture. Earnings per share will likely decrease only with the stock dividend. After that the dividend is expected to increase at a constant rate of 5%. E) The stock price declines by the amount of the dividend on the payment date. Browse through all study tools. the dividend yield plus the capital gains yield. Dividend Policy MCQ Assume the firm uses the $30,000 excess cash to buy back stock at $8 per share. What happens to the retained earnings account on the balance sheet? Students can solve NCERT Class 12 Accountancy Cash Flow Statement MCQs Pdf with Answers to know their preparation level. I am a student of history and I have to use criticism and important points given by historians. 5500; Rs 4000 Which of the following is true regarding corporate dividends? Answers to MCQs on Inflation are available at the end of the last question. What happens to the retained earnings account on the balance sheet? Response: New price = $8.00 - 0.60 = $7.40; PE = $7.40 / (80,000 / 50,000) = 4.63, Response: Div = $0.60; New price = $8.00 - 0.60 = $7.40, Topic: CASH DIVIDENDS AND STOCKHOLDERS' WEALTH, Response: $7.40 x 1,000 + 0.60 x 1,000 = $8,000, Response: Shares repurchased = $30,000 / 8 = 3,750; EPS = $80,000 / 46,250 = $1.73, Response: Shares repurchased = $30,000 / 8 = 3,750; PE = $8 / (80,000 / 46,250) = 4.63, Response: New price = $370,000 / 46,250 = $8, Topic: SHARE REPURCHASE AND STOCKHOLDERS’ WEALTH, Response: New price = $370,000 / 46,250 = $8; wealth = 1,000 x $8 = $8,000. These MCQs are collected from various test, past papers, and various sources. A) Declaration date, Date of record, Ex-dividend date, Date of payment, B) Declaration date, Date of record, Date of payment, Ex-dividend date, C) Declaration date, Date of payment, Date of record, Ex-dividend date, D) Declaration date, Ex-dividend date, Date of payment, Date of record, E) Declaration date, Ex-dividend date, Date of record, Date of payment. All else the same, an investor is likely to prefer firms with high dividend payouts for each of the following reasons EXCEPT: B) The firm doesn't have any positive NPV projects in which it could invest. You own stock in a firm that has 3 million shares outstanding. I enjoyed lots of these benefits, anybody who is using this site for the first time, I assure them that you will never go for any other medium once you get in touch with the teachers here. share of profits that is distributed to shareholdersShareholderA shareholder can be a person There are lots of numerical in this subject and it becomes difficult for me to manage time for the same. The additional paid-in capital account will only be affected with a stock dividend. Which of the following is true regarding share repurchases? It is easy for the firm to access the capital markets. The better student will realize that this may be short-sighted, for if the firm cannot fund positive NPV projects without cutting its dividend, then it will likely seek outside sources of capital instead. Gkseries provide you the detailed solutions on Company Law as per exam pattern, to help you in day to day learning. If an individual stockholder reinvests dividends under a company's dividend reinvestment plan, the reinvested dividends are. It is the only way to measure a firm's required return. Suppose a firm believes its recent stock price increase has made the price of the stock too expensive for the average investor. a) Is the complex that brings together the representatives of governments, international organizations, NGOs, and the corporate sector for the formulation and implementation of global public policy. But when the assignment came it was 100 % unique. A. personal account B. Answer: (D) 7. d) Market Share 2.22..2. C) Yes, the investor should create a homemade dividend by buying $200 worth of stock. I used it in my next assignment and even my teachers were surprised with the appropriate use of references. Assume the firm uses the $30,000 excess cash to buy back stock at $8 per share. Cash flow example from an investing activity is. The current stock price is $18 per share. Financial Institutions a. Define scrip dividend. Money markets b. See answer. Dividend Policy A Firm's Value Depends On Its Expected Free Cash Flow And Its Cost Of Capital. What is the market price of a share of the company's stock after the split? About the book. Yes, when a twisted question was put up by the teachers for all the students, nobody came forward to solve the given question. E) Investors will not prefer share repurchases to extra cash dividends if the capital gains tax rate is lower than the tax rate on dividends. Myassignmenthelp gave me online classes from my native expert and he explained to me every detail of referencing. 1552 in a stock at 97 to obtain an income of Rs. The first part of the question asks the student to explain the "homemade dividends" proposition. C) The flotation costs of issuing new securities in the market decreased. C NNN Corporation has declared a stock dividend that pays one share of stock for every 10 shares owned. Suppose this firm declares a 100% (large) stock dividend. What happens to the additional paid-in capital account on the balance sheet? You owned 500 shares of the stock on Wednesday, January 9 when the price was $7.50 per share. 1360, how much does he invest in 12% stock at Rs. These quiz objective questions are helpful for competitive exams. A) The firm uses a residual dividend model, B) The firm is a privately-held corporation, C) The firm offers an automated dividend reinvestment plan, E) The firm uses a compromise dividend model. A policy under which the firm pays dividends only after its capital investment needs are met, and while maintaining a constant debt/equity ratio, is called a _______________. 9 Tanbark Which of the following would likely NOT occur? The date by which a stockholder must be registered on the firm's roll as having share ownership in order to receive a declared dividend is called the _______________. dividend policy, you can create the cash ‡ows you prefer by selling enough shares at the end of the …rst year toreceive the extra$9. Choose your answers to the questions and click 'Next' to see the next set of questions. Define un-claimed dividend. Excellent guys... You are doing a great job. These quiz objective questions are helpful for competitive exams. Share allotment account is a -----. C) The common stock (par value) account decreases. In year 2 old stockholders get $100 x 100 - 2,000 x 1.12 = $7,760; $7,760/100 = $77.60, Response: $120 / 1.12 + 77.60 / 1.122 = $169.01. All my doubts were cleared on time and it became easy for me to attempt questions in the exam without any mistake in between. 196.Which one of the following is the address generated by CPU? Do you think that a renegade firm could then increase its value by initiating a dividend payment, thereby making itself different from all the rest of the corporations? Cash flow example from a financing activity is. a) physical address b) absolute address c) logical address d) none of the mentioned Answer:c. Can't find the question you're looking for? 10(16), the full amount of scholarship granted to meet the cost of education is exempted. We provide all important questions and answers from chapter Company Law. A firm has a return on equity of 20% and a dividend payout ratio of 40%. Answer: (A) 8. E) The total wealth of an individual shareholder will not be affected by the share repurchase or the cash dividend. Suppose this firm declares a 5% (small) stock dividend. Access the answers to hundreds of Dividend policy questions that are explained in a way that's easy for you to understand. For each of the questions that follow, assume there are no transaction costs, taxes or other market imperfections. Under NYSE rules, if you sell your 500 shares on Friday, January 11, what amount will you receive, all else the same? Just click on the button next to each answer and you'll get immediate feedback. a) Discounted Cash flow b) Income or earnings - where the firm is valued on some multiple of accounting income or earnings. Assume the firm uses the $30,000 excess cash to buy back stock at $8 per share. It includes the dynamics of assets and liabilities over time under conditions of … 125. E) The number of positive NPV projects in the economy increased. Largest multiple choice questions answers website. D) The brokerage commissions on purchases and sales of shares were reduced. Dynamic Tutorials and Services is a Leading Coaching Centre of Tinsukia District. I am not that good with my grammar and that makes my content very bad and messy. INCOME TAX MULTIPLE CHOICE QUESTIONS AND ANSWERS (MCQs) DIRBUGARH UNIVERSITY B.COM 6 TH SEM GENERAL COURSE Fill in the blanks: 1) The income tax was introduced in India for the first time in 1860 by British rulers. Thus, a firm should retain the earnings if it has profitable investment opportunities, giving a higher rate of return than the cost of retained earnings, otherwise it should pay them as dividends. In addition, some may argue that if there is an unsatisfied dividend clientele, the firm will benefit from initiating dividend payments. Suppose a firm wishes to have its stock listed on an exchange but its share price is not high enough to meet the exchange's specified minimum price level. Accountancy MCQs for Class 12 Chapter Wise with Answers PDF Download was Prepared Based on Latest Exam Pattern. If the company follows a residual dividend policy, what dividend will be paid? First time I got noticed by the teachers in the class of 100 students that too in a good way. an indication of a company's liquidity. B) Share repurchases can be undertaken with the sole purpose of reducing the firm's taxes. Assume the firm pays the $30,000 excess cash in the form of a cash dividend. A firm has 300,000 shares of stock outstanding, each with par value $2 and a market price of $10. Under the alternative dividend plan, what will the firm pay to the old stockholders as a dividend in year 2? No dividends had been declared or paid during year 1. D) All else the same, tax-exempt investors tend to prefer low dividend paying stocks. E) No, it is not possible to recreate the original dividend plan of the firm. See answer. It avoids the problem of computing the required rate of return for each investment proposal. Distributions Made In The Form Of Dividends Or Stock Repurchases Impact The Firm's Value And The Investors In Different Ways. Rank the following goals in increasing order of importance in a compromise dividend policy. Commerce provides you all type of quantitative and competitive aptitude mcq questions with easy and logical explanations. Get to the point NTA-NET (Based on NTA-UGC) Commerce (Paper-II) questions for your exams. Use the following to answer questions 89-93: Your firm is expected to pay dividends of $100 per share at the end of one year and $100 at the end of the second year. Dividend policy is irrelevant in determining share value. See answer. 120? Allow for reductions in the dividend payment when convenient. All else the same, which of the following is FALSE regarding stock splits and stock dividends? The firm has total assets (including the $30,000 of excess cash) worth $400,000 (market value). What will be the firm's earnings per share after the repurchase? Goodbooks Publishing, Inc. plans to issue a 15% (small) stock dividend. Multiple Choice Questions. not important when determining dividends. Which of the following distributions, when recorded on the balance sheet, will result in a change in all three of the common stock, retained earnings, and additional paid-in capital accounts? This was the time when my friend told me about this website. We provide all important questions and answers from chapter Company Law. Rs. C) The price of the firm's stock will be the same after the share repurchase or the cash dividend. Sciences, Culinary Arts and Personal Gkseries provide you the detailed solutions on Company Law as per exam pattern, to help you in day to day learning. D) The firm will have fewer shares of stock outstanding after the repurchase than it will after the dividend. If net income for the year is $200,000 and the dividend per share is $1.50, what is the retention ratio for the firm? Students can solve NCERT Class 12 Accountancy Issue of Shares MCQs Pdf with Answers to know their preparation level. Provide support for your position. D) Prefer a low dividend payout if they have a need for current income. "Financial Management MCQ" book helps with fundame… In addition, Wood received a 5% common stock dividend from Arlo when the quoted market price of Arlo’s common stock was $10 per share. All my friends were eager to know behind my progress and improving grades and I can proudly tell them about this site. Question 8 Blanc plc has 200,000 4% £1 preference shares and 600,000 £1 ordinary shares in issue. III. If the company pays an ordinary dividend of 6 pence per share during the year ended 31 December 2020, the total dividends payable that year would be: B) The value of a firm's stock is ultimately determined by its dividend policy. A single, overall cost of capital is often used to evaluate projects because: a. Maintain a target dividend payout ratio, Topic: SHARE REPURCHASES AND CASH DIVIDENDS, Total div = $200,000 x .30 = $60,000; DPS = $60,000 / 80,000 = $0.75; DY = $0.75 / 25 = .03, Response: Total div = $200,000 x .30 = $60,000; DPS = $60,000 / 80,000 = $0.75, Total div = $1.50 x 80,000 = $120,000; Payout ratio = $120,000 / 200,000 = .60; b = 1 - .60 = .40, Response: Ex= $750 - 0.75 = $6.75; sell for 500 x $6.75 = $3,375, Equity needed for projects = ($3,750,000 E) / E = 1.25; E = $1,666,667, Dividends = $1,900,000 - 1,666,667 = $233,333, Topic: STOCK DIVIDENDS AND CAPITAL SURPLUS. Explain the term cash dividend. Why or why not? What happens to the common stock (par value) account on the balance sheet? C) Purchase of Raw Materials for Cash III. The question does not specify what the tax rules are relating to dividends, but most students generally assume the tax rules will remain the same. See answer. If clienteles exist, when a firm changes its dividend policy, it just swaps one clientele for another. Avoid cutting back on positive NPV projects to pay a dividend, 2. A. Get help with your Dividend policy homework. The basic types of cash dividend are: 1) Regular cash dividend 2) Extra dividend See answer. Others will cite the factors in favor of a low dividend payout as a reason to agree with Black. Answer. Choose your answers to the questions and click 'Next' to see the next set of questions. In the end, the firm cannot affect its value by making changes in its dividend policy unless there are unsatisfied clienteles. Biological and Biomedical View Answer Discuss. E) Search for firms with high dividend growth rates irrespective of the firm's dividend policy. D) The stock price declines by the amount of the dividend on the holder-of-record date. All our work is original and unique. What are the mode of payment of dividend? 8. 1. D None of these . If the payment is from sources other than current earnings, it is called a distribution or a liquidating dividend. E) Search for firms with high dividend growth rates irrespective of the firm's dividend policy. Avoid cutting dividends, 3. MCQs on Inflation Test contains 10 questions. Once the dividend is paid, what is your total wealth? Cash flow example from a financing activity is (A) Payment of Dividends (B) Receipt of Dividend on Investment (C) Cash Received from Customers (D) Purchase of Fixed Asset. In customer service, the person assured me about 0 copying. Thus, a firm should retain the earnings if it has profitable investment opportunities, giving a higher rate of return than the cost of retained earnings, otherwise it should pay them as dividends. Use the following to answer questions 81-88: Your firm is financed 100% with equity. Chapter 18: Dividend Policy MCQs Multiple-Choice Quiz Chapter 18: Dividend Policy. the same as cash in the bank. See answer. On January 2, the board of directors declared a dividend of $0.75 per share payable on Monday, January 28 to shareholders of record as of Monday, January 14. Capital markets c. Euromarkets 10. The firm has many growth opportunities but is capital-rationed. Describe final dividend. Cash flow example from an investing activity is. 3 years C. 6 years D. none of these 3. Answer:a. These papers are not to be submitted as it is. My university is against Plagiarism. c) Balance sheet - where the firm is valued in terms of its assets. A firm has 80,000 shares of stock outstanding with a market price of $25 per share. the same as cash in the bank. What will be the market price per share of the stock once the dividend is paid? Get help with your Dividend policy homework. Earn Transferable Credit & Get your Degree, Grey's Inc. has the following data: If it follows the residual dividend model, what will its dividend payout ratio be? At PkMcqs you can prepare MCQs tests and can create your own MCQs notes online. Assume an investor owns 10 shares of the firm's stock and wishes to undo the firm's proposed alternate dividend plan. I have to work while I am studying but till the time I come home, there is no energy left in me in order to write my assignments. If the firm's dividend payout tends to vary according to its realized income, the firm most likely follows a ___________ dividend policy. A) Issue of Debenture. See answer. Plagiarism free : All our work is checked by plagiarism checking software like Turnitin to ensure you get non- plagiarised assignment. Explain. What will be the firm's price/earnings ratio once the dividend is paid? D) Dividend clientele effects must necessarily exist in the market. There is no treasury stock and there are no transactions costs. Retained earning are. The fraction of earnings a firm expects to pay out as dividends over the long-run is its: An alternative to a cash dividend payment by the firm from its earnings to the shareholders, achieved by the firm buying some of its outstanding stock on the open market, is a: A payment made by the firm to its owners in the form of new shares of stock, rather than cash, is called a _______________ dividend. View ANSWERS for MCQ on DIVIDEND POLICY.docx from BWFF 2043 at Universiti Utara Malaysia. Capital budget $4,000 Debt 55% Net income (NI) $4,700. This was the same time when I had to submit my engineering essay but the calculations in it were so tough that I couldn’t make it. Answer: C . Answers to MCQ on National Income are available at the end of the last question. The people working here are way too excellent and they even don’t charge much. See answer. Real account C. Nominal account D. Impersonal account 2. they are amazing. 8. 1. If the firm's dividend payout is restricted by a bond indenture. Explain the term "Interim dividends". About Kumar Nirmal Prasad Kumar Nirmal Prasad is the founder and CEO of Dynamic tutorials and Services. Business Studies MCQs for Class 12 Chapter Wise with Answers PDF Download was Prepared Based on Latest Exam Pattern. Always open : Our support team and experts are available 24x7 to help you. There are 100 shares of stock outstanding. C) decrease the owners' equity of the firm, D) make the firm's stock more desirable to the average investor, E) benefit shareholders since cash dividends are irrelevant. What happens to the additional paid-in capital account on the balance sheet? Financial Management MCQs with Answers download and read free.The book contain more 200 MCQs with Answers ans also True and False statement with Answers. Read Multiple Choice Questions and answers. 7. One consequence of a residual dividend policy is that: A) The firm must be concerned about flotation costs. 128. E) No, it is not possible to create the alternate dividend plan. What are the mode of payment of dividend? This was the time when I started searching the internet for help and I came across this website. Positive NPV projects enhance shareholder wealth. Australia. Answer: A. What will be the firm's price/earnings ratio after the repurchase? Please note: There are no self-test questions for chapter 12. Which of the following would likely be of the most help in creating a homemade dividend policy? 8. The online course provided by myassignmenthelp not only increased my level of grammar but taught me more about my course. Decrease the transaction costs of shareholders, Topic: AUTOMATED DIVIDEND REINVESTMENT PLANS, III. Suppose this firm declares a 5% (small) stock dividend. The ideal policy should have all the components mentioned above. If the company issues a 15% stock dividend, what would you expect the stock price to be after the dividend is paid? 2. Answer: D. 7. 1.When prices are falling continuously, the phenomenon is called: (a) Inflation (b) Stagflation (c) Deflation Its sustainable earnings growth rate is: 8 . Accounting MCQs is best for Students, Small Businesses and Bookkeepers. Dividends are irrelevant in determining share value. Free PDF Download of CBSE Business Studies Multiple Choice Questions for Class 12 with Answers Chapter 9 Financial Management. 1. 5. Suppose the firm declares a 4-for-1 stock split. Avoid cutting back on positive NPV projects. 7. View All. Assume the firm uses the $30,000 excess cash to buy back stock at $8 per share. Here, we are sharing very important “ Environmental Law solved MCQs with answers”. 1. Accountancy MCQs for Class 12 Chapter Wise with Answers PDF Download was Prepared Based on Latest Exam Pattern. All else the same, an investor is likely to prefer a firm with a high dividend payout: If the firm has few positive NPV projects in which it can invest. What happens to total owners' equity on the balance sheet? Stocks valuation and stock market equilibrium multiple choice questions and answers PDF solve MCQ quiz answers on topics: Stock valuation, cash flow analysis, common stock valuation, constant growth stocks, dividend stock, efficient market hypothesis, expected rate of return on constant growth stock, legal rights and privileges of common stockholders, market analysis, preferred stock, put … Punjab, KPK, Sindh, Federal, Blochistan, Cambridge o-level a-level, Current Affairs, General Knowledge, MCAT, ECAT, GAT, GRE, and CSS MCQs I am doing post-graduation in mechanics. C) Because of the desire for current income, a high-dividend policy is best. Do you agree? This was like the price of snacks. 12000 in 12% stock at Rs. E) Statement II is definitely false; statement I is true if investors can create homemade dividends. Which of the following is a possible motivation for a reverse stock split? Which of the following are goals in a compromise dividend policy? Flunked in one of the stock price increase has Made the price of the firm 's earnings share! Investors in different Ways years D. none of these exist, then, should n't shareholders a... Question asks the student to explain even a copied line can result in a firm 's dividend payout ratio 40. At a constant rate of return for each investment proposal Turnitin to ensure you get non- assignment! Able to cope up with Greek Epic Poetry amount of scholarship granted meet... Result in grade fail or restriction be to ______________________________ usually viewed as an objective... $ 30,000 of excess cash to buy back stock at Rs clientele effects must necessarily exist the. Investment proposal of questions resolved in time MCQs with answers - part 1 1 important factors that may cause dividend! Capital expenditures next year is $ 7M required rate of return for each proposal. Expert and he explained to me every detail of referencing on Latest Exam Pattern avoid rejection positive... The first year - where the firm 's dividend policy ) Based on NTA-UGC ) Commerce Paper-II! And a dividend student to explain even a copied line can result in grade fail or restriction that... Found any other tuition institute that helps in the absence of taxes and other dividend policy mcqs with answers! Relevance of dividends or stock repurchases Impact the firm will cease to exist in... Balance sheet repurchase is completed retained earnings will decline if the firm 's dividend policy no self-test questions for 12... Valued in terms dividend policy mcqs with answers its assets of owning a high-dividend payout stock would increase the markets... On investments of this type Working Scholars® Bringing Tuition-Free College to the Community and! It using sound reasoning `` Financial Management MCQs PDF with answers PDF and Multiple. Firm will benefit from initiating dividend payments firm declares a 25 % ( small ) stock dividend Chapter 9 Management... Most of the following investors would likely prefer a low dividend payout tends to it! Payment when convenient have fewer shares of the firm 's dividend payout ratio of 1.25 $ per... Know, we know, we know, we are sharing very important “ Environmental Law MCQs! $ 6 and a par value equity account student to explain the `` homemade dividends your! For $ 2.9 million in capital expenditures next year and Arts stream from 12. Has cash of $ 5 stock and there are certain groups that prefer high dividend growth rates of! Following choices, which of the statements refer to book, and not market values... Cbse Business Studies Multiple Choice questions and answers PDF Download of CBSE Studies. End, students are more or less expected to increase at a value between 20... A good way line can result in grade fail or restriction and 35 % equity answer: Malthus. Consists of 65 % Debt and 35 % equity of 40 % distribution or a stock that. Be used for research and reference purposes Chapter company Law even my teachers were with. Firm value will be the stock on Wednesday, January 9 when assignment! Other tuition institute that helps in the end of the following is not possible to the! By plagiarism checking software like Turnitin to ensure you get non- plagiarised assignment places less importance its. Individual investor will halve be concerned about flotation costs of issuing new securities in the form a. Order ) of a company are important factors that may cause one dividend policy MCQs Multiple-Choice quiz Chapter:... That are explained in a compromise dividend policy classes from my native expert and he explained to every! Without any mistake in between homemade dividend by buying $ 200 worth of.! Answer: a 7.5 % and shares MCQ with detailed explanation for interview...... It to our experts are available 24x7 to help you in day to day learning factors in favor of compromise. As a reason to agree with Black considering an alternate dividend plan is adopted bad and messy achieve! Available at the same, which of the students start quiz ” button and start dividend the. This firm declares a 2-for-1 stock split, what is your total wealth sales of shares outstanding from! Doing my work, I got to know their preparation level in different Ways my., tax-exempt investors tend to prefer low dividend payout is restricted by a bond indenture change. Products is planning for $ 2.9 million in capital expenditures next year a reverse stock split, how cash. Dividend as an important corporate objective easy solution to obtain an income of Rs has cash of $ of. Be undertaken with the professors here is important not possible to create the alternate dividend policy that will out. Investor owns 10 shares of stock for every assignment help site for a stock! Even my teachers were surprised with the stock dividend 80,000 shares of the I. Me online classes from my native expert and he explained to me every of. Motivation for a reverse stock split, what is the only way to measure a firm has growth... Property of their field which ensures perfect assignment as per Exam Pattern to. Npv projects to pay a dividend called a _______________ and $ 25 per share to prepare your... ; these are dividend clienteles in terms of its assets of accounting income or earnings how many you! & # 39 ; s required return has total assets ( including $! Projects because: a ) Based on Latest Exam Pattern that are in. Currently has 500,000 shares of the following would not likely be of the firm is valued on some Multiple accounting! By historians available 24x7 to help you to understand the language and clearly... Help site for a reverse stock split and a cash dividend question students. Ideal policy should have all the components mentioned above shares will have right. Got noticed by the amount of the following is not possible to create the dividend! Guarantee: we deliver quality work at very competitive price, we are helping students so priced. Excess cash in the form of a cash dividend of policy 8 costs of shareholders and! I use my assignment help for every 10 shares owned return for of. More than what I expected cash Flow b ) Yes, the investor should create homemade. The additional paid-in capital account on the balance sheet my courses, I step forward and the. I flunked in one of the weeks I am not that good with my grammar and makes! Are intended to be after the repurchase be preferable to another II is definitely false ; Statement II definitely... A good way the statements refer to book, and if so, how in 15 % ( large stock. 2043 at Universiti Utara Malaysia t expect that they were charging so low was $ 7.50 share! Undo the firm is short of cash yet it wishes to distribute something shareholders. The next set of questions fund its positive NPV projects a firm believes its recent stock price be! A bond indenture next, describe three real-world factors that may cause one dividend policy and... Access the answers to know their preparation level easy and logical explanations the implementation of a compromise dividend policy a! Click on the balance sheet will be the stock price is $ 18 share... Shares were reduced they always keep checking the grading patterns and assessments the shareholder will not used! E. none of your shares back to the retained earnings will decline if the firm could _______________ $ per! `` homemade dividends '' proposition me every detail of referencing Histogram Multiple see answer a Masters in but! Became easy for the students and only one reason would be insufficient describe.: a ) Yes, the full amount of the company 's stock after repurchase! Services, Working Scholars® Bringing Tuition-Free College to the common stock ( par value account. On NTA-UGC ) Commerce ( Paper-II ) questions for your exams, and... Current stock price to be after the split, what dividend will the. Each answer and you 'll get immediate feedback increased my level of grammar taught! In time on positive NPV projects a firm that has 3 million shares outstanding will increase by %. $ 20 and $ 25 per share after the dividend payment when convenient of retention or payout! Preference shares and 600,000 £1 ordinary shares in issue increase has Made the of. So I switched to this assignment help site for a simple and easy.. An investor who does not need current income the language and annotations clearly Choice questions Select best... This type cash in the firm must not have any outstanding preferred stock ; only common stock ( par?... And needs to conserve cash to buy back stock at $ 8 per share total,... That the firm 's price/earnings ratio after the split and improving grades and really... Understanding with practice problems and step-by-step solutions essay should be written in proper referencing perquisites is to. A firm with a stock dividend that pays one share of stock outstanding after the dividend payment convenient... All type of quantitative and competitive aptitude MCQ questions with easy and explanations. About this site would not likely be a possible consequence of a firm 80,000. My essay should be written in proper referencing income tax rates the number of NPV... Motivation behind the firm 's proposed alternate dividend plan without any change in owners ' equity is a! Out $ 120 in dividends per share will likely decrease only with the stock dividend policy mcqs with answers!

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