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strayer fin534 quiz 8

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Question;Question 1;Which of the following statements;about dividend policies is correct?;Correct Answer;Question 2;If a firm adheres strictly to the;residual dividend policy, the issuance of new common stock would suggest that;Correct Answer:.;Question 3;Which of the following statements;is correct?;Answer;Correct Answer;Question 4;Which of the following statements;is CORRECT?;Correct Answer:.;Question 5;Which;of the following statements is correct?;Correct Answer;Question 6;Which;of the following should not;influence a firm?s dividend policy decision?;Correct Answer;Question 7;If a;firm adheres strictly to the residual dividend policy, then if its optimal;capital budget requires the use of all earnings for a given year (along with;new debt according to the optimal debt/total assets ratio), then the firm;should pay;Correct Answer;Question 8;You own;100 shares of Troll Brothers? stock, which currently sells for $120 a;share. The company is contemplating a;2-for-1 stock split. Which of the;following best describes what your position will be after such a split takes;place?;Answer;Correct Answer;Question 9;Myron;Gordon and John Lintner believe that the required return on equity increases as;the dividend payout ratio is decreased.;Their argument is based on the assumption that;Correct Answer:.;Question 10;Which;of the following statements is correct?;Correct Answer;Question 11;Which;of the following would be most likely to lead to a decrease in a firm?s;dividend payout ratio?;Correct Answer;I.;Question 12;Which of the following statements;is correct?;Correct Answer;If a company wants to raise new equity capital rather;steadily over time, a new stock dividend reinvestment plan would make;sense. However, if the firm does not;want or need new equity, then an open market purchase dividend reinvestment;plan would probably make more sense.;Question 13;Firm M is a mature firm in a;mature industry. Its annual net income;and net cash flows are both consistently high and stable. However, M?s growth prospects are quite;limited, so its capital budget is small relative to its net income. Firm N is a relatively new firm in a new and;growing industry. Its markets and products have not stabilized, so its annual;operating income fluctuates considerably.;However, N has substantial growth opportunities, and its capital budget;is expected to be large relative to its net income for the foreseeable future.;Which of the following statements is correct?;Answer;Correct Answer;Question 14;Which;of the following statements is correct?;Correct Answer:.;Question 15;Which;of the following statements is correct?;Correct Answer;Question 16;Which;of the following would increase the likelihood that a company would increase;its debt ratio, other things held constant?;Correct Answer;Question 17;Which;of the following statements is CORRECT?;Correct Answer;Question 18;Companies;HD and LD have the same total assets, operating income (EBIT), tax rate, and;business risk. Company HD, however, has;a much higher debt ratio than LD. Also;HD?s basic earning power (BEP) exceeds its cost of debt (rd). Which of the following statements is CORRECT?;Correct Answer;Question 19;Other;things held constant, which of the following events is most likely to encourage;a firm to increase the amount of debt in its capital structure?;Correct Answer:.;Question 20;Which;of the following statements is CORRECT?;Correct Answer:.;Question 21;Which;of the following statements is CORRECT?;Correct Answer;Question 22;The;firm?s target capital structure should be consistent with which of the;following statements?;Correct Answer;Question 23;Business;risk is affected by a firm's operations.;Which of the following is NOT associated with (or does not contribute;to) business risk?;Correct Answer:.;Question 24;If debt;financing is used, which of the following is CORRECT?;Correct Answer:.;Question 25;Which;of the following events is likely to encourage a company to raise its target;debt ratio, other things held constant?;Correct Answer;Question 26;Companies;HD and LD have identical tax rates, total assets, and basic earning power;ratios, and their basic earning power exceeds their before-tax cost of debt;rd. However, Company HD has a higher;debt ratio and thus more interest expense than Company LD. Which of the following statements is CORRECT?;Correct Answer;Question 27;Which;of the following statements is CORRECT?;As a firm increases the operating leverage used to produce a given;quantity of output, this will;Correct Answer;Question 28;Which of the following statements;is CORRECT?;Correct Answer:.;Question 29;Which;of the following statements is CORRECT?;Correct Answer;Question 30;Which;of the following statements is CORRECT?;Correct Answer:.

 

Paper#49854 | Written in 18-Jul-2015

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