Which of the following is (are) true? Select one: a. In industries with volatile
ID: 2640457 • Letter: W
Question
Which of the following is (are) true?
Select one:
a. In industries with volatile earnings, the residual dividend policy results in the most consistent dividend stream.
c. In general, the higher the number of positive NPV investment opportunities for a firm, the lower the dividend payout ratio.
d. According to the informational content of dividends, an increase in dividends is always a positive signal.
2.
Farrah owns 5,000 shares of stock in DAS, Inc. with a market value of $15,000.DAS declares a 20% stock dividend. After the dividend is paid, Farrah owns
Select one:
a. 6,000 shares with a market value of $15,000.
c. 5,000 shares with a market value of $18,000.
d. 5,100 shares with a market value of $15,300.
Which of the following is (are) true? Select one: a. In industries with volatile earnings, the residual dividend policy results in the most consistent dividend stream. b. If the clientele effect is correct, firms should follow a constant dividend payout ratio policy. c. 5,000 shares with a market value of $18,000. d. 5,100 shares with a market value of $15,300. c. In general, the higher the number of positive NPV investment opportunities for a firm, the lower the dividend payout ratio. d. According to the informational content of dividends, an increase in dividends is always a positive signal. 2. Farrah owns 5,000 shares of stock in DAS, Inc. with a market value of $15,000.DAS declares a 20% stock dividend. After the dividend is paid, Farrah owns Select one: a. 6,000 shares with a market value of $15,000. b. 6,000 shares with a market value of $18,000.Explanation / Answer
Answers:
c. In general, the higher the number of positive NPV investment opportunities for a firm, the lower the dividend payout ratio.
a. 6,000 shares with a market value of $15,000.
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