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QUESTION:11[QUESTION BANK ID:269437]TYPE:MULTIPLE CHOICECORRECTWhich of the following should not influence a firm’s dividend policy decision?AThe firm’s ability to accelerate or delay investment projectsBA strong preference by most shareholders for current cash income vs. capital gainsCConstraints imposed by the firm’s bond indentureDThe fact that much of the firm’s equipment has been leased rather than bought and ownedEThe fact that Congress is considering changes in the tax law regarding the taxation of dividends vs. capital gainsQUESTION:12[QUESTION BANK ID:269592]TYPE:MULTIPLE CHOICECORRECTWhich of the following statements is correct?
QUESTION:13[QUESTION BANK ID:269447]TYPE:MULTIPLE CHOICECORRECTWhich of the following statements is correct?QUESTION:14[QUESTION BANK ID:269454]TYPE:MULTIPLE CHOICECORRECTAn implicit cost of adding debt to the capital structure is that it
AAdds interest expense to the operating statementBIncreases the required return on equityCReduces the expected return on assetsDDecreases the firm's betaQUESTION:15[QUESTION BANK ID:269446]TYPE:MULTIPLE CHOICECORRECTIf a firm adheres strictly to the residual dividend policy, the issuance of new common stock would suggest thatAThe dividend payout ratio has remained constantBThe dividend payout ratio is increasingCNo dividends were paid during the yearDThe dividend payout ratio is decreasingEThe dollar amount of investments has decreased