FIN335Ch14and18Questions - Chapter 14 Questions Topic...

Info icon This preview shows pages 1–3. Sign up to view the full content.

Chapter 14 Questions: Topic: DIVIDENDS 1. Payments made out of a firm's earnings to its owners in the form of cash or stock are called: A) Dividends. B) Distributions. C) Share repurchases. D) Payments-in-kind. E) Stock splits. Answer: A Topic: REGULAR CASH DIVIDENDS 2. A cash payment made by a firm to its owners in the normal course of business is called a: Topic: SPECIAL DIVIDENDS 3. A cash payment made by a firm to its owners as a result of a one-time event is called a: Topic: LIQUIDATING DIVIDENDS 4. A cash payment made by a firm to its owners when some of the firm's assets are sold off is called a: Topic: DECLARATION DATE 5. The date on which the board of directors passes a resolution authorizing payment of a dividend to the shareholders is the ____________ date. A) ex-rights B) ex-dividend C) record D) payment E) declaration Answer: E Topic: EX-DIVIDEND DATE
Image of page 1

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

6. The date before which a new purchaser of stock is entitled to receive a declared dividend, but on or after which she does not receive the dividend, is called the ____________ date. Topic: DATE OF RECORD 7. The date by which a stockholder must be registered on the firm's roll as having share ownership in order to receive a declared dividend is called the _______________. Topic: DATE OF PAYMENT 8. The date on which the firm mails out its declared dividends is called the _______________. Topic: HOMEMADE DIVIDENDS 9. 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): A) Perfect foresight model. B) M&M Proposition I. C) Capital structure irrelevancy. D) Homemade leverage. E) Homemade dividend policy. Answer: E Topic: CLIENTELE EFFECT 10. The observed empirical fact that stocks attract particular investors based on the firm's dividend policy and the resulting tax impact on investors is called the _______________.
Image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern