FIN 534 8

FIN 534 8


Asked by 4 years ago
398.7k points

FIN 534 Quiz 8

  Question 1

In the real world, dividends

  Question 2

Which of the following should not influence a firms dividend policy decision?

  Question 3

If a firm adheres strictly to the residual dividend policy, the issuance of new common stock would suggest that

  Question 4

Which of the following statements is correct?

  Question 5

Which of the following statements is correct?

  Question 6

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

  Question 7

Which of the following statements is correct?

  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?

  Question 9

Which of the following actions will best enable a company to raise additional equity capital?

  Question 10

Which of the following statements is NOT correct?

  Question 11

Which of the following statements is correct?

  Question 12

Trenton Publishing follows a strict residual dividend policy.  All else equal, which of the following factors would be most likely to lead to an increase in the firms dividend per share?

  Question 13

Which of the following statements is correct?

  Question 14

Which of the following statements is CORRECT?

  Question 15

Which of the following statements about dividend policies is correct?

  Question 16

Based on the information below, what is Ezzel Enterprises' optimal capital structure?

  Question 17

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?

  Question 18

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?

  Question 19

Firms U and L each have the same amount of assets, and both have a basic earning power ratio of 20%.  Firm U is unleveraged, i.e., it is 100% equity financed, while Firm L is financed with 50% debt and 50% equity.  Firm Ls debt has a before-tax cost of 8%.  Both firms have positive net income.  Which of the following statements is CORRECT?

  Question 20

Which of the following statements is CORRECT?  As a firm increases the operating leverage used to produce a given quantity of output, this will

  Question 21

If debt financing is used, which of the following is CORRECT?

  Question 22

Which of the following statements is CORRECT?

  Question 23

Which of the following statements is CORRECT?

  Question 24

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 HDs basic earning power (BEP) exceeds its cost of debt (rd).  Which of the following statements is CORRECT?

  Question 25

Which of the following statements is CORRECT?

  Question 26

Which of the following events is likely to encourage a company to raise its target debt ratio, other things held constant?

  Question 27

Which of the following would increase the likelihood that a company would increase its debt ratio, other things held constant?

  Question 28

Which of the following statements is CORRECT, holding other things constant?

  Question 29

Which of the following statements is CORRECT?

  Question 30

Which of the following statements is CORRECT?

 

FIN 534
maddy

1 Answer

Answered by 4 years ago
403.4k points

Oh Snap! This Answer is Locked

 FIN 534  8

Thumbnail of first page

Excerpt from file: Question1 Intherealworld,dividends CorrectAnswer: areusuallymorestablethanearnings. Question2 Whichofthefollowingshouldnotinfluenceafirmsdividendpolicydecision? CorrectAnswer: Thefactthatmuchofthefirmsequipmenthasbeenleasedratherthanboughtandowned. Question3...

Filename: FIN 534 Quiz 8.pdf

Filesize: 104.6K

Downloads: 59

Print Length: 7 Pages/Slides

Words: 273

Your Answer

Surround your text in *italics* or **bold**, to write a math equation use, for example, $x^2+2x+1=0$ or $$\beta^2-1=0$$

Use LaTeX to type formulas and markdown to format text. See example.

Sign up or Log in

  • Answer the question above my logging into the following networks
Sign in
Sign in
Sign in

Post as a guest

  • Your email will not be shared or posted anywhere on our site
  •  

Stats
Views: 3.1k
Asked: 4 years ago

Related