Glenn L. What is the current market price of these bonds? Which of the following statements is most correct? This statement is true.
Answer One advantage of dividend reinvestment plans is that they enable investors to avoid paying taxes on the dividends they receive.
If a company has an established clientele of investors who prefer a high dividend payout, and if management wants to keep stockholders happy, it should not follow the strict residual dividend policy.
If a firm follows a strict residual dividend policy, then, holding all else constant, its dividend payout ratio will tend to rise whenever the firm's investment opportunities improve. If Congress eliminates taxes on capital gains but leaves the personal tax rate on dividends unchanged, this would motivate companies to increase their dividend payout ratios.
Despite its drawbacks, following the residual dividend policy will tend to stabilize actual cash dividends, and this will make it easier for firms to attract a clientele that prefers high dividends, such as retirees. Once the percentage is set, then dividend policy is on "automatic pilot" and the actual dividend depends strictly on earnings.
Answer Firms with a lot of good investment opportunities and a relatively small amount of cash tend to have above average payout ratios. One advantage of the residual dividend policy is that it leads to a stable dividend payout, which investors like.
An increase in the stock price when a company decreases its dividend is consistent with signaling theory as postulated by MM.
If the "clientele effect" is correct, then for a company whose earnings fluctuate, a policy of paying a constant percentage of net income will probably maximize the stock price. Stock repurchases make the most sense at times when a company believes its stock is undervalued.
The company is contemplating a 2-for-1 stock split. Which of the following best describes what your position will be after such a split takes place?FlipQuiz™ provides educators with a quick way to create quiz boards for test reviews in the classroom that can be saved for later use.
Terms and Conditions and. A 26 Fin Week 8 Assignment Set 4: $ Fin Homework Set 2 With Explanation: $ A+ Fin Week 9 Financial Research Report Important Factors Driving My Decision A Manager In This We Like To Go For The Stock: $ Fin /fin Week 5 Quiz 4 Question 1 For A Portfolio Of 40 Randomly Selected Stocks Which The.
FIN Quiz 3.
Question 1. Which of the following statements is CORRECT? Question 2. A U.S. Treasury bond will pay a lump sum of $1, exactly 3 years from today/5(8).
However, this was determined to be a deceptive practice, and it is illegal today. Strayer. Tags: fin complete, fin exams, fin final, fin final exam part 1, fin final exam. A+ Fin Week 9 Financial Research Report Important Factors Driving My Decision A Manager In This We Like To Go For The Stock: $ A+ Fin Final Exam Part 2 Two Versions Posted For Making 60 Questions Total Question 1 Which Of The Following Is Not Normally: $ FIN QUIZ 9 (CHAPTER 16) • Question 1 2 out of 2 points Which of the following statements is CORRECT?
Answer Selected Answer: If a firm sells on terms of 2/10 net 30, and its DSO is 30 days, then the firm probably has some past-due accounts. Correct Answer: If a firm sells on terms of 2/10 net 30, and its DSO is 30 days, then the firm probably has some past-due accounts%(22).