Gkseries provide you the detailed solutions on Company Law as per exam pattern, to help you in day to day learning. I gave them the work but I still had doubts in my mind. D) Prefer a low dividend payout if they have a need for current income. B) The firm must view a predictable dividend payout as an important corporate objective. 6. C) decrease the owners' equity of the firm, D) make the firm's stock more desirable to the average investor, E) benefit shareholders since cash dividends are irrelevant. If his total dividend per annum is Rs. I enjoyed lots of these benefits, anybody who is using this site for the first time, I assure them that you will never go for any other medium once you get in touch with the teachers here. Topic: LOW DIVIDEND PAYOUT RATES . The firm has total assets (including the $30,000 of excess cash) worth $400,000 (market value). Allow for reductions in the dividend payment when convenient. Which of the following is the correct chronology of a dividend payment? Effective service, timely completion of all the given work, quality, low price, use of advanced technology and many more of such services are provided by this site. if net income next year is $2.5 million and... Torrence Inc. has the following data. One day when I was fed up from doing my work, I started googling Online assignment help website and I came across this. Analyse your skils set with MCQ on Dividend Policy on stock dividend, stock splits, bonus shares and ordinary shares.. Boost your skills Now! If the company follows a residual dividend policy, what dividend will be paid? About the book. C) The price of the firm's stock will be the same after the share repurchase or the cash dividend. Investors require a 12% return on investments of this type. Australia. Which of the following is a goal of a compromise dividend policy? If any of these exist, then it is possible that the firm and its shareholders will benefit from making dividend payments. The dividend from the stock is: A 7.5% . E) The number of shares owned by each individual investor will halve. There are no taxes, transaction costs, or other market imperfections. What is the stock price before the alternative dividend plan is adopted? However, in some cases the payment of dividends limit the number of positive NPV projects a firm can accept. Decrease the transaction costs of shareholders, Topic: AUTOMATED DIVIDEND REINVESTMENT PLANS, III. In addition, some may argue that if there is an unsatisfied dividend clientele, the firm will benefit from initiating dividend payments. A firm currently has 500,000 shares of stock outstanding, with a market price of $6 and a par value of $5. Dividend Policy A Firm's Value Depends On Its Expected Free Cash Flow And Its Cost Of Capital. Answers to MCQs on Inflation are available at the end of the last question. This question challenges students to think about the relevance of dividends. Which of the following investors would likely prefer a firm with a low dividend payout rate? Assume an investor owns 10 shares of the firm's stock and wishes to create the alternate dividend plan without the aid of the firm. See answer. D) The investor has a need for current income. Go ahead and submit it to our experts to be answered. What is the dividend for the 4th quarter? Suppose this firm declares a 2-for-1 stock split. Cash flow example from an investing activity is. Can't find the question you're looking for? Use the following to answer questions 89-93: Your firm is expected to pay dividends of $100 per share at the end of one year and $100 at the end of the second year. dividend-policy-exam-questions-answers 1/2 Downloaded from www.maestropms.ca on November 16, 2020 by guest [EPUB] Dividend Policy Exam Questions Answers Yeah, reviewing a books dividend policy exam questions answers could mount up your near associates listings. 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