Question 1

A stock repurchase will:

Accepted Answer

A)  increase the number of shares outstanding.
B)  decrease the earnings per share.
C)  decrease the market price per share.
D)  increase the market value per share.
E)  decrease the PE ratioF) B) and C)
G) A) and C)

Question 2

LOG,Inc.currently has 329,000 shares of stock outstanding that sell for $62 per share.Assuming no market imperfections or tax effects exist,what will be the share price after LOG implements a 7-for-3 stock split?

Accepted Answer

A)  $26.57
B)  $25.60
C)  $28.84
D)  $19.18
E)  $21.67F) C) and D)
G) A) and E)

Question 3

Red's Electronics has a balance sheet with equity account values of: common stock ($1 par) of $70,500; capital surplus of $141,600; and retained earnings of $208,300.How many shares will be outstanding if the firm declares a 2-for-9 reverse stock split?

Accepted Answer

A)  5,833 shares
B)  15,667 shares
C)  18,000 shares
D)  305,750 shares
E)  317,250 sharesF) A) and B)
G) B) and C)

Question 4

Which one of the following is a payment of either cash or shares of stock that is paid out of earnings to a firm's shareholders?

Accepted Answer

A)  Interest
B)  Capital surplus
C)  Retained earnings
D)  Dividend
E)  Stock repurchaseF) A) and D)
G) B) and E)

Question 5

Which one of the following dates is the date on which the board of directors votes to pay a dividend?

Accepted Answer

A)  Record date
B)  Declaration date
C)  Ex-dividend date
D)  Payment date
E)  Settlement dateF) A) and E)
G) A) and B)

Question 6

Which one of these favors a high-dividend payout?

Accepted Answer

A)  Low transaction costs on stock trades
B)  Lower taxes on capital gains than on dividends
C)  Tax deferment on capital gains, but not on dividend income
D)  Flotation costs
E)  Corporate shareholdersF) C) and D)
G) A) and C)

Question 7

Heidi owns 400 shares of Boyd Enterprises stock,which is valued at $13 a share.Boyd Enterprises just declared a stock dividend of 4 percent.How many shares will Heidi own and what will be the price per share after the dividend?

Accepted Answer

A)  385; $12.50
B)  385; $13.00
C)  416; $12.50
D)  416; $13.00
E)  416; $13.50F) A) and B)
G) B) and D)

Exam 14: Dividends and Dividend Policy

LOG,Inc.currently has 329,000 shares of stock outstanding that sell for $62 per share.Assuming no market imperfections or tax effects exist,what will be the share price after LOG implements a 7-for-3 stock split?

Correct Answer
verified

Which one of these favors a high-dividend payout?

Correct Answer
verified

Heidi owns 400 shares of Boyd Enterprises stock,which is valued at $13 a share.Boyd Enterprises just declared a stock dividend of 4 percent.How many shares will Heidi own and what will be the price per share after the dividend?

Correct Answer
verified

A stock repurchase will:

Correct Answer
verified

Red's Electronics has a balance sheet with equity account values of: common stock ($1 par) of $70,500; capital surplus of $141,600; and retained earnings of $208,300.How many shares will be outstanding if the firm declares a 2-for-9 reverse stock split?

Correct Answer
verified

Which one of the following dates is the date on which the board of directors votes to pay a dividend?

Correct Answer
verified

Which one of the following is a payment of either cash or shares of stock that is paid out of earnings to a firm's shareholders?

Correct Answer
verified

Exam 14: Dividends and Dividend Policy

LOG,Inc.currently has 329,000 shares of stock outstanding that sell for $62 per share.Assuming no market imperfections or tax effects exist,what will be the share price after LOG implements a 7-for-3 stock split?

Correct AnswerverifiedShow Answer

Which one of these favors a high-dividend payout?

Correct AnswerverifiedShow Answer

Heidi owns 400 shares of Boyd Enterprises stock,which is valued at $13 a share.Boyd Enterprises just declared a stock dividend of 4 percent.How many shares will Heidi own and what will be the price per share after the dividend?

Correct AnswerverifiedShow Answer

A stock repurchase will:

Correct AnswerverifiedShow Answer

Red's Electronics has a balance sheet with equity account values of: common stock ($1 par) of $70,500; capital surplus of $141,600; and retained earnings of $208,300.How many shares will be outstanding if the firm declares a 2-for-9 reverse stock split?

Correct AnswerverifiedShow Answer

Which one of the following dates is the date on which the board of directors votes to pay a dividend?

Correct AnswerverifiedShow Answer

Which one of the following is a payment of either cash or shares of stock that is paid out of earnings to a firm's shareholders?

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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