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Corporate Finance Study Set 12

Business

Quiz 19 :

Dividends and Other Payouts

Quiz 19 :

Dividends and Other Payouts

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Distributions to shareholders from capital are called:
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Answer:

C

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If you have a choice of receiving a cash payment of $5 today:
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D

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Two important elements of the dividend policy irrelevance proposition are:
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C

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The ability of shareholders to undo the dividend policy of the firm and create an alternative dividend payment policy via reinvesting dividends or selling shares of stock is called (a):
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Which of the following is true?
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The date on which the board of directors passes a resolution authorizing payment of a dividend to the shareholders is the _____ date.
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A dividend is usually a cash distribution from:
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Homemade dividends are described by Modigliani and Miller to be:
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The KatyDid Co. is paying a $1.25 per share dividend today. There are 120,000 shares outstanding with a par value of $1.00 per share. As a result of this dividend, the:
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In an efficient market, ignoring taxes and time value:
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A firm plans to pay dividends of $12.50 at time 0 and $14 at time 1. Ignoring transaction costs and assuming that the investor can earn 8% on investments, which statement is true?
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The important relationship between the ex-dividend date and the record date is:
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On the date of record the stock price drop is:
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Which of the following lists events in chronological order from earliest to latest?
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You purchased 200 shares of ABC stock on July 15th. On July 20th, you purchased another 100 shares and then on July 22st you purchased your final 200 shares of ABC stock. The company declared a dividend of $1.10 a share on July 5th to holders of record on Friday, July 23rd. The dividend is payable on July 31st. How much dividend income will you receive on July 31st from ABC?
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Your company has announced a dividend of $2.50 per share. You and the rest of the marginal investors are in the 35% tax bracket. What should happen to the stock price?
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Which one of the following is an argument in favor of a low dividend policy?
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The dividend-irrelevance proposition of Miller and Modigliani depended on the following relationship between investment policy and dividend policy.
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The date before which a new purchaser of stock is entitled to receive a declared dividend, but on or after which he/she does not receive the dividend, is called the _____ date.
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A firm with a 1,000 stockholders plans to terminate operations at the end of two years. Investors are certain that the firm will generate cash flows of $1,000 at the end of the first year and $50,000 at the end of the second year. The risk-free rate is 10%. Which of the following is true, ignoring transaction costs and taxes?
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