Chap017金融

Chapter17-DividendsandDividendPolicy17-1Chapter17DividendsandDividendPolicyMultipleChoiceQuestions1.GreenRoofMotelshasmorecashonhandthanitsoperationsrequire.Thus,thefirmhasdecidedtopayoutsomeofitsearningsintheformofcashtoitsshareholders.Whatarethesepaymentstoshareholderscalled?A.dividendsB.stockpaymentsC.repurchasesD.payments-in-kindE.stocksplits2.Lester'sFrozenFoodsjustpaidout$0.50asharetoitsshareholders.Thecashforthesepaymentscamefromalargesaleofassets,notfromanyearningsofthefirm.Whatarethesepaymentstoshareholderscalled?A.dividendsB.distributionsC.repurchasesD.payments-in-kindE.stocksplits3.A$0.60quarterlycashpaymentpaidbyT.L.Jones&Co.toitsshareholdersinthenormalcourseofbusinessiscalleda:A.repurchase.B.liquidatingdividend.C.regularcashdividend.D.specialdividend.E.extracashdividend.Chapter17-DividendsandDividendPolicy17-24.TheboardofdirectorsofWilsonSportingEquipmentmetthisafternoonandpassedaresolutiontopayacashdividendof$0.42asharenextmonth.Inrelationtothisdividend,todayisreferredtoaswhichoneofthefollowingdates?A.decisiondateB.date-of-recordC.declarationdateD.paymentdateE.ex-dividenddate5.Theex-dividenddateisdefinedas_____businessday(s)beforethedateofrecord.A.1B.2C.3D.5E.106.Whichoneofthefollowingdatesisusedtodeterminethenamesofshareholderswhowillreceiveadividendpayment?A.ex-rightsdateB.ex-dividenddateC.dateofrecordD.dateofpaymentE.declarationdate7.Dividendpaymentsaremailedonwhichoneofthefollowingdates?A.ex-rightsdateB.ex-dividenddateC.dateofrecordD.dateofpaymentE.declarationdateChapter17-DividendsandDividendPolicy17-38.Whichoneofthefollowingreferstotheabilityofshareholderstoundoafirm'sdividendpolicyandcreateanalternativedividendpolicybyreinvestingdividendsorsellingsharesofstock?A.perfectforesightmodelB.personalizationC.recapitalizationD.offsettingleverageE.homemadedividendpolicy9.Whatistheinformationcontenteffect?A.anytypeofnewinformationthatcausesafirmtoceasepayingdividendsB.anynewsannouncementthatwasanticipatedandthusproducesnoreactionfrominvestorsC.theprimarycontributingdatathathelpsdirectorsdeterminetheamountofaparticulardividendpaymentD.anytypeofreactionfromashareholderinresponsetoanewsannouncementrelatedtothestockissuerE.thefinancialmarket'sreactiontoachangeintheamountofafirm'sdividend10.ThecommonstockofPiersonEnterpriseshashistoricallyhadahighdividendyieldandisexpectedtocontinuetodoso.Asaresult,themajorityofitsshareholdersareindividualsandentitiesthatareseekingaregularsourceofcashincome.Mostoftheseshareholderspayeithernotaxesorarelativelylowamountoftaxes.Thefactthatmostoftheseshareholdershavesimilarcharacteristicsisreferredtobywhichoneofthefollowingterms?A.informationcontenteffectB.clienteleeffectC.efficientmarketshypothesisD.distributioneffectE.marketreactioneffect11.HJCorporationhasexcesscashandhasoptedtobuysomeofitssharesofoutstandingcommonstock.Whatisthisprocessofbuyingcalled?A.stockdividendB.stocksplitC.stockrepurchaseD.stockrecapE.stockrepealChapter17-DividendsandDividendPolicy17-412.Whichoneofthefollowinginvolvesapaymentinsharesbyastockissuerthatincreasesthenumberofsharesashareholderownsbutalsodecreasesthevaluepershare?A.cashdividendB.stockdividendC.stockrepurchaseD.stocksplitE.reversestocksplit13.Whichoneofthefollowingdoesnotaffectthetotalequityofafirmbutdoesincreasethenumberofsharesoutstanding?A.specialdividendB.stocksplitC.sharerepurchaseD.rightsofferE.liquidatingdividend14.BellWeatherMarketshasrecentlysoldforaslittleas$8ashareandasmuchas$15ashare.Thedifferencebetweenthesetwopricesisreferredtoasthe:A.pricevariance.B.bid-askspread.C.tradingrange.D.openingprice.E.closingprice.15.Areversestocksplitisdefinedas:A.anincreaseinthenumberofsharesoutstandingthatdoesnotaffectowners'equity.B.afirmbuyingbackexistingsharesofitsstockontheopenmarket.C.afirmsellingnewsharesofstockontheopenmarket.D.adecreaseinthenumberofsharesoutstandingthatdoesnotaffectowner'sequity.E.adecreaseinboththenumberofsharesoutstandingandthepricepershare.Chapter17-DividendsandDividendPolicy17-516.Whichoneofthefollowingstatementsrelatedtocashdividendsiscorrect?A.Extracashdividendscannotberepeatedinthefuture.B.Adividendisneveraliabilityuntilithasbeendeclared.C.Ifafirmhaspaidregularquarterlydividendsforatleastfiveconsecutiveyearsitislegallyobligatedtocontinuedoingso.D.Regularcashdividendsreducepaid-incapital.E.Thedividendyieldexpressestheannualdividendasapercentageofnetincome.17.BillingsleyUniteddeclareda$0.20asharedividendonThursday,October16.ThedividendwillbepaidonMonday,November10toshareholdersofrecordonFriday,October31.Whichoneofthefollowingistheex-dividenddate?A.Tuesday,October28B.Wednesday,October29C.Thursday,October30D.Wednesday,November5E.Thursday,November618.Taylor'sToolsdeclareda$0.48asharedividendonFriday,March7.ThedividendwillbepaidonMonday,April7.Theex-dividenddateisTuesday,March18.Whatistherecorddate?A.Friday,March14B.Monday,March17C.Wednesday,March19D.Thursday,March20E.Friday,March2119.Thelastdateonwhichyoucanpurchasesharesofstockandstillreceivethedividendisthedatewhichis_____businessdayspriortothedateofrecord.A.1B.2