18. This morning, Lambert Materials bought 10,000 of its outstanding shares in the open market.What type of transaction was this? A. Stock payoutB. Stock distributionC. Stock dividendD. Stock repurchaseE. Stock reversal 19. Twelve days ago, DOG, Inc. declared a dividend of $1.34 a share. The ex-dividend date is tomorrow. All else constant, which one of the following is the best estimate of DOG, Inc.'s opening stock price tomorrow? 20. Which one of the following would tend to favor a low dividend payout? 21. Joseph Turner and Sons has 125,000 shares of stock outstanding. The firm has extra cash so it announced this morning that it is willing to repurchase 25,000 of its shares. What type of offer is the firm making? 22. As compared to a cash dividend, a share repurchase will do which of the following? A. Increase both earnings per share and the PE ratioB. Increase the earnings per share but not affect the PE ratioC. Increase the earnings per share and decrease the PE ratio(assuming the stock price won’t’ change) D. Not affect either the earnings per share nor the PE ratio E. Not affect the earnings per share but will decrease the PE ratio
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