Essay regarding Fin 534 Week being unfaithful Quiz almost eight

B 534 (Strayer) Financial Management Week 9 Quiz eight

Question one particular 2 out of 2 factors

Which from the following transactions about gross policies is proper? Answer Picked Answer:

The clientele result suggests that companies should adhere to stable dividend policy.

Appropriate Answer:

The clientele result suggests that corporations should stick to stable dividend policy.

Problem 2 2 out of 2 points

If the firm adheres strictly for the residual gross policy, the issuance of recent common inventory would suggest that Answer Chosen Answer:

zero dividends had been paid during the year.

Correct Response:

no payouts were paid out during the year.

Issue 3 two out of 2 points

Which of the subsequent statements is correct? Answer Chosen Answer:

When a firm repurchases some of its stock on view market, then simply shareholders who sell all their stock for over they paid for it will be controlled by capital profits taxes.

Appropriate Answer:

If a firm repurchases some of their stock in the open market, then shareholders who sell their stock for more than they bought it for will be be subject to capital benefits taxes.

Question 4 a couple of out of two points

Which of the subsequent statements is CORRECT? Answer Selecte d Answer: If a firm's stock cost is quite high in accordance with most stocks—say $500 per share—then it could declare a stock split of say 10-for-1 so as to bring the price to something close to $50. Furthermore, if the price are relatively low—say $2 every share—then it might declare a " reverse split” of say 1-for-25 so as to bring the price up to somewhere around $50 per reveal.

Correct Response:

If a business stock cost is quite high in accordance with most stocks—say $500 every share—then it could declare an investment split of say 10-for-1 so as to accept the price down to something near to $50. Additionally, if the price is relatively low—say $2 per share—then it may declare a " change split” of say 1-for-25 so as to take the price up to somewhere around $50 per discuss.

Question five 2 out of 2 points

Which with the following statements is correct? Response Selected Answer:

Stock repurchases make the most feeling at times when a firm believes their stock is undervalued.

Appropriate Answer:

Inventory repurchases maximize sense at times when a company feels its share is undervalued.

Question 6th 2 out of 2 details

Which in the following should never influence a firm's gross policy decision? Answer Selected Answer:

The truth that much of the firm's gear has been rented rather than bought and held.

Correct Response:

The fact much of the firm's equipment continues to be leased instead of bought and owned.

Issue 7 two out of two points

When a firm adheres strictly towards the residual dividend policy, in that case if it is optimal capital budget needs the use of most earnings for a given 12 months (along with

new personal debt according to the maximum debt/total resources ratio), then a firm should pay Response Selected Answer:

no payouts to prevalent stockholders.

Appropriate Answer:

no dividends to common stockholders.

Question eight 2 out of 2 factors

You own 100 shares of Troll Brothers' stock, which will currently markets for $120 a talk about. The company is usually contemplating a 2-for-1 stock split. Which in turn of the pursuing best identifies what your situation will be following such a split takes place? Answer Chosen Answer:

You should have 200 stocks of share, and the share will transact at or perhaps near $60 a discuss.

Correct Answer:

You will have 200 shares of stock, as well as the stock will trade at or near $60 a share.

Query 9 two out of two points

Myron Gordon and John Lintner believe that the necessary return about equity raises as the dividend pay out ratio is definitely decreased. Their particular argument is based

on the presumption that Response Selected Response:

investors perspective dividends as being less risky than potential future capital gains.

Right Answer:

investors view payouts as being much less risky than potential upcoming capital gains.

Question 15 2 out of 2 points...

Capital Expense Appraisal Dissertation