chap018 - Chapter 018 Dividends and Dividend Policy...

Info icon This preview shows pages 1–5. Sign up to view the full content.

View Full Document Right Arrow Icon
Chapter 018 Dividends and Dividend Policy Multiple Choice Questions 1. A payment made out of a firm's earnings to its owners in the form of either cash or stock is called a: A . dividend. b. distribution. c. repurchase. d. payment-in-kind. e. stock split. SECTION: 18.1 TOPIC: DIVIDEND TYPE: DEFINITIONS 2. A payment made by a firm to its owners from sources other than current or accumulated retained earnings is called a: a. dividend. B . distribution. c. repurchase. d. payment-in-kind. e. stock split. SECTION: 18.1 TOPIC: DISTRIBUTION TYPE: DEFINITIONS 18-1
Image of page 1

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

View Full Document Right Arrow Icon
Chapter 018 Dividends and Dividend Policy 3. A cash payment generally paid quarterly by a firm to its owners in the normal course of business is called a: SECTION: 18.1 TOPIC: REGULAR CASH DIVIDEND TYPE: DEFINITIONS 4. The declaration date is the date on which the: SECTION: 18.1 TOPIC: DECLARATION DATE TYPE: DEFINITIONS 5. The ex-dividend date is defined as _____ business days before the date of record. SECTION: 18.1 TOPIC: EX-DIVIDEND DATE TYPE: DEFINITIONS 18-2
Image of page 2
Chapter 018 Dividends and Dividend Policy 6. The date by which a shareholder must be recorded as the share owner in order to receive a declared dividend is called the: a. ex-rights date. b. ex-dividend date. C . date of record. d. date of payment. e. declaration date. SECTION: 18.1 TOPIC: DATE OF RECORD TYPE: DEFINITIONS 7. The date the dividend payments are mailed is called the: SECTION: 18.1 TOPIC: DATE OF PAYMENT TYPE: DEFINITIONS 8. The ability of shareholders to undo a firm's dividend policy and create an alternative dividend policy by reinvesting dividends or selling shares of stock is called (a): SECTION: 18.2 TOPIC: HOMEMADE DIVIDEND POLICY TYPE: DEFINITIONS 18-3
Image of page 3

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

View Full Document Right Arrow Icon
Chapter 018 Dividends and Dividend Policy 9. The market's reaction to a change in a firm's dividend payout is referred to as the: A . information content effect. b. clientele effect. c. efficient markets hypothesis. d. distribution effect. e. dividend fallout. SECTION: 18.5 TOPIC: INFORMATION CONTENT EFFECT TYPE: DEFINITIONS
Image of page 4
Image of page 5
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