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ookmarks Window Hel Quiz: Exam 2 n.instructure.com/courses/1323846/quizzes/17486

ID: 2614093 • Letter: O

Question

ookmarks Window Hel Quiz: Exam 2 n.instructure.com/courses/1323846/quizzes/1748642/take MyUSF Question 3 5 pts On its 12/31/14 balance sheet, Barnes Inc showed $510 million of retained earnings, and exactly that same amount was shown the following year. Which of the following statements is correct? O If the company lost money in 2014, it must have paid dividends. O The company must have had zero net income in 2014. O The company must have paid out half of its 2014 earnings as dividends. O The company must have paid no dividends in 2014. O Dividends could have been paid in 2014, but they would have had to equal Ni for the year Question 4 5 pts The CFO of Davies Industries plans to have the company issue

Explanation / Answer

3. Option E. Dividends could have been paid in 2014, but they would have had to equal the NI for the year.

4. Option D. The company's net income would increase

5. Option B. The yield on a 10-year bond is Greater than the yield on a 1-year bond because of maturity premiums.