The residual dividend policy implies that investors prefer to have the firm retain and reinvest earnings rather than pay them out in dividends if the rate of return the firm can earn on reinvested earnings:
A. is less than its cost of retained earnings.
B. is less than its weighted average cost of capital (WACC).
C. exceeds its cost of debt.
D. exceeds the rate investors, on average, can earn themselves on other investments of comparable risk.
E. is less than the discount rate offered by the firm on its dividend reinvestment plan (DRIP).
Answer: D
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a. True b. False Indicate whether the statement is true or false
QFD's graphical format documents each of the following except
A) state transitions. B) technical correlations. C) technical priorities, benchmarks, and targets. D) planning matrix.
Mitigation of damages is intended to ensure that the damages awarded are not
a. illegal. b. inadequate. c. nominal. d. excessive.
At year-end, Marshall Enterprise's Factory Overhead account has a credit balance of $5,000, which is not a material amount. What entry should Marshall make at year-end?
A. Debit Factory Overhead $5,000; credit Finished Goods Inventory $5,000. B. Debit Factory Overhead $5,000; credit Cost of Goods Sold $5,000. C. Debit Factory Overhead $5,000; credit Work in Process Inventory $5,000. D. Debit Cost of Goods Sold $5,000; credit Factory Overhead $5,000. E. No entry is needed.