Dividends may be paid in cash or stock

Assignment Help Financial Management
Reference no: EM13944447

Which of the following statements is true?

I. Dividends may be paid in cash or stock

II. A cash dividend reduces a corporation's cash and retained earnings

III. A stock dividend does not affect corporation's cash or equity

a. I and II only

b. I and III only

c. I, II, and III

d. None of the above

Reference no: EM13944447

Questions Cloud

Fixed-rate mortgage-what should be monthly mortgage payment : You need a 30-year, fixed-rate mortgage to buy a new home for $640,000. Your mortgage bank will lend you the money at a 9% APR for this 360-month loan. What should be the monthly mortgage payment? Same question as above, what is interest and balance ..
Capital asset pricing model approach to equity valuation : The capital asset pricing model approach to equity valuation: You are preparing to make monthly payments of $75, beginning at the end of this month, into an account that pays 6 percent interest compounded monthly. How many payments will you have made..
What should be the monthly mortgage payment : You need a 30-year, fixed-rate mortgage to buy a new home for $640,000. Your mortgage bank will lend you the money at a 9% APR for this 360-month loan. What should be the monthly mortgage payment?
Market interest rates increase-corporate WACCs will decrease : If corporate tax rates increase, then all corporate WACCs will also increase. If market interest rates increase, then all corporate WACCs will decrease. If a company's overall exposure to systematic risk increases, then the company's WACC will decrea..
Dividends may be paid in cash or stock : Dividends may be paid in cash or stock. A cash dividend reduces a corporation's cash and retained earnings. A stock dividend does not affect corporation's cash or equity
What would cause an increase in net working capital : Suppose you are a finance student interviewing for a job and the interviewers ask you what would cause an increase in net working capital. Which of the following would be the best response?
Paying annual dividends : Diets For You announced today that it will begin paying annual dividends next year. The first dividend will be $0.12 a share. The following dividends will be $0.15, $0.20, $0.50, and $0.60 a share annually for the following 4 years, respectively. Aft..
What is market price of this stock if market rate of return : KL Airlines paid an annual dividend of $1.42 a share last month. The company is planning on paying $1.50, $1.75, and $1.80 a share over the next 3 years, respectively. After that, the dividend will be constant at $2 per share per year. What is the ma..
Examining balance sheets : You are examining balance sheets for 2012 and 2013 and you observe that a company's net fixed assets increased from $45 million to $50 million. The income staement states that depreciation was $2 million. If it's the case that the company purchased a..

Reviews

Write a Review

Financial Management Questions & Answers

  What must coupon rate be on these bonds

Rhiannon Corporation has bonds on the market with 22.5 years to maturity, a YTM of 6.90 percent, and a current price of $1,057. The bonds make semiannual payments. What must the coupon rate be on these bonds?

  Probability distribution of the risky funds

The following data apply to Problems 4 through 10: A pension fund manager is con- sidering three mutual funds. The first is a stock fund, the second is a long-term govern- ment and corporate bond fund, and the third is a T-bill money market fund that..

  Anticipated return on the investment

A stock currently costs $ 85 and pays a $ 3.50 dividend. If you expect to sell the stock after 10 years for $ 125 what is your anticipated return on the investment.

  Annual effective interest rate

Gerry pays $ W to buy a ten-year annuity with end-of-year payments of $ 1,400. This purchase price allows her to replace her capital by means of a savings account that has an annual effective interest rate of 3% and also to earn an overall annual yie..

  Two-thirds of her tuition payment in scholarship money

Suppose you plan to send your daughter to college in three years. You expect her to earn two-thirds of her tuition payment in scholarship money, so you estimate that your payments will be $10,000 a year for four years. To estimate whether you have se..

  From a philosophical and theoretical point of view do you

contd from the question - as well as situations that involved public figures from various genres caught performing

  Management plans to issue seven-year zero coupon bonds

Rocking house Corp. Management plans to issue seven-year zero coupon bonds. It has learned that these bonds will sell today at a price of $445.16. Assuming annual coupon payments, what is the yield to maturity on these bonds?

  Which investment should firm choose if cost of capital

Consider the following projects, X and Y where the firm can only choose one. Project X costs $600 and has cash flows of $400 in each of the next 2 years. Project Y also costs $600, and generates cash flows of $500 and $275 for the next 2 years, respe..

  Explain how many eurodollar deposit liabilities were created

The Bank of England makes a $ 3 million Eurodollar loan to P flug & Company in England. Provide T- accounts for DMV, New York Money Center Bank, Barclays Bank, and the Bank of England that describe each set of transactions. Explain how many Eurodolla..

  Targeted weighted average cost of capital

Blue Inc. desires a weighted average cost of capital of 13.2 percent. The firm has an after-tax cost of debt of 4.8 percent and a cost of equity of 15.2 percent (assume that these costs do not change with the capital structure). What debt-equity rati..

  Question 1a stock price is currently 100 it is known that

question 1a stock price is currently 100. it is known that in one year it will be either 146 or 80. the risk-free rate

  Identify the buyer and seller of the option

A bank buys a five year maturity GNMA bond that is callable at par after one year, yielding 6.88 percent. The matched duration zero coupon Treasury rate is 6.11 percent. A bank buys an FHLB pass through MBS at par yielding 7.47 percent. The matched d..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd