DIV HYBRID FIN Q4.docx - Dividend Policy Hybrid and...

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Dividend Policy, Hybrid and Derivative SecuritiesQuiz # 4Multiple Choice1.A dividend reinvestment plan enables stockholders to(a)reinvest the dividends in money market instruments which are risk free.(b)reinvest all dividends in the firm with no accompanying increase in equity.(c)acquire additional dividends through redemption of stock.(d)acquire shares at little or no transaction costs.
2.The residual theory of dividends suggests that dividends are _________ to the value of the firm.
3.The information content of dividends refers to
4.According to the residual theory of dividends, if the firm’s equity need exceeds the amount of retained earnings, the firm would
5.Dividend policy is a form of
(a)capital budgeting policy.(b)financing policy.(c)working capital policy.(d)dividend reinvestment policy.
6.IFRS/PFRS requires explicit disclosure of _________ obligation on the firm’s balance sheet. For this type of lease, the present value for all of its payments isshown as an asset and the total lease payment obligation is included as a liability on the firm’s balance sheet.

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