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Multiple Choice Questions 1.Firms can pay out cash to their shareholders

Question : Multiple Choice Questions 1.Firms can pay out cash to their shareholders : 1409496

 

Multiple Choice Questions
 

1.Firms can pay out cash to their shareholders in the following ways:
I) dividends; II) share repurchases; III) interest payments 
 
 

A. I only

B. II only

C. I and II only

D. III only

2.Dividend policy changes are decided by:
I) the managers of a firm; II) the government; III) the board of directors 
 
 

A. I only

B. II only

C. III only

D. I and II only

3.Which of these dates, when arranged in chronological order, occurs last? 
 
 

A. dividend payment date

B. ex-dividend date

C. record date

D. dividend declaration date

4.Which of the following lists events in chronological order from earliest to latest? 
 
 

A. Record date, declaration date, ex-dividend date

B. Declaration date, record date, ex-dividend date

C. Declaration date, ex-dividend date, record date

D. Record date, ex-dividend date, declaration date

5.On January 2, Michigan Mining declared a $2-per-share quarterly dividend payable on March 9th to stockholders of record on Friday, February 9. What is the latest date by which you could purchase the stock and still get the recently declared dividend? 
 
 

A. February 5

B. February 6

C. February 7

D. February 8

6.Which of the following dividends is never in the form of cash?

I) regular dividend;
II) special dividend;
III) stock dividend;
IV) liquidating dividend 
 
 

A. I only

B. II only

C. III only

D. I, II, and IV only

7.The following statements are true of dividend reinvestment plans (DRIPs):

I) They are offered by the companies to their shareholders.
II) Generally, new shares are issued at a discount.
III) The dividends are taxable as ordinary income. 
 
 

A. I only

B. I and III only

C. I, II, and III

D. III only

8.Firms can repurchase shares in the following ways:
I) open market repurchase; II) tender offer; III) Dutch auction; IV) direct negotiation with a major shareholder 
 
 

A. I only

B. II only

C. III only

D. I, II, III, and IV

9.A Dutch auction is the same as a(an): 
 
 

A. discriminatory price auction.

B. uniform price auction.

C. English auction.

D. share repurchase.

10.The par value of the outstanding shares is known as: 
 
 

A. retained earnings.

B. legal capital.

C. book value of equity.

D. additional paid-in capital.

 

 

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