FIN 534 Week 9 Quiz 8     (30 questions with answers) 99,99 % Scored                      PLEASE DOWNLOAD HEREQuestion 1Wh...
Myron Gordon and John Lintner believe that the required return on equityincreases as the dividend payout ratio is decrease...
Companies HD and LD have the same total assets, operating income (EBIT), taxrate, and business risk. Company HD, however, ...
Question 28Which of the following statements is CORRECT?Question 29Which of the following statements is CORRECT?Question 3...
Upcoming SlideShare
Loading in...5
×

Fin 534 week 9 quiz 8

315

Published on

0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total Views
315
On Slideshare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
1
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Transcript of "Fin 534 week 9 quiz 8"

  1. 1. FIN 534 Week 9 Quiz 8 (30 questions with answers) 99,99 % Scored PLEASE DOWNLOAD HEREQuestion 1Which of the following statements about dividend policies is correct?Question 2If a firm adheres strictly to the residual dividend policy, the issuance of newcommon stock would suggest thatQuestion 3Which of the following statements is correct?Question 4Which of the following statements is CORRECT?Question 5Which of the following statements is correct?Question 6Which of the following should not influence a firm’s dividend policy decision?Question 7If a firm adheres strictly to the residual dividend policy, then if its optimal capitalbudget requires the use of all earnings for a given year (along with new debtaccording to the optimal debt/total assets ratio), then the firm should payQuestion 8You own 100 shares of Troll Brothers’ stock, which currently sells for $120 ashare. The company is contemplating a 2-for-1 stock split. Which of the followingbest describes what your position will be after such a split takes place?Question 9
  2. 2. Myron Gordon and John Lintner believe that the required return on equityincreases as the dividend payout ratio is decreased. Their argument is based onthe assumption thatQuestion 10Which of the following statements is correct?Question 11Which of the following would be most likely to lead to a decrease in a firm’sdividend payout ratio?Question 12Which of the following statements is correct?Question 13Firm M is a mature firm in a mature industry. Its annual net income and net cashflows are both consistently high and stable. However, M’s growth prospects arequite limited, so its capital budget is small relative to its net income. Firm N is arelatively new firm in a new and growing industry. Its markets and products havenot stabilized, so its annual operating income fluctuates considerably. However,N has substantial growth opportunities, and its capital budget is expected to belarge relative to its net income for the foreseeable future. Which of the followingstatements is correct?Question 14Which of the following statements is correct?Question 15Which of the following statements is correct?Question 16Which of the following would increase the likelihood that a company wouldincrease its debt ratio, other things held constant?Question 17Which of the following statements is CORRECT?Question 18
  3. 3. Companies HD and LD have the same total assets, operating income (EBIT), taxrate, and business risk. Company HD, however, has a much higher debt ratiothan LD. Also HD’s basic earning power (BEP) exceeds its cost of debt (rd). Which of the following statements is CORRECT?Question 19Other things held constant, which of the following events is most likely toencourage a firm to increase the amount of debt in its capital structure?Question 20Which of the following statements is CORRECT?Question 21Which of the following statements is CORRECT?Question 22The firm’s target capital structure should be consistent with which of the followingstatements?Question 23Business risk is affected by a firms operations. Which of the following is NOTassociated with (or does not contribute to) business risk?Question 24If debt financing is used, which of the following is CORRECT?Question 25Which of the following events is likely to encourage a company to raise its targetdebt ratio, other things held constant?Question 26Companies HD and LD have identical tax rates, total assets, and basic earningpower 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 interestexpense than Company LD. Which of the following statements is CORRECT?Question 27Which of the following statements is CORRECT? As a firm increases theoperating leverage used to produce a given quantity of output, this will
  4. 4. Question 28Which of the following statements is CORRECT?Question 29Which of the following statements is CORRECT?Question 30Which of the following statements is CORRECT?

×