If a firm adheres strictly to the residual dividend model, the issuance of new common stock would suggest that
A. the dividend payout ratio has remained constant.
B. the dividend payout ratio is increasing.
C. no dividends will be paid during the year.
D. the dividend payout ratio is decreasing.
E. the dollar amount of capital investments had decreased.
Answer: C
You might also like to view...
Aster Inc is an American firm that manufactures motorcycles under the brand name AsterBikes. The firm conducts a market research to identify alternative sources of sales growth by leveraging its core competencies and competitive advantages
Based on its market research and analysis, the firm decides to enter the automobile industry, and introduces a line of Aster ComfortCars. In this example, Aster Inc is using which of the following offensive strategies? A) enter unrelated new markets B) develop new markets C) harvest for cash flow D) divest for cash flow E) enter related new markets
________ influences the purpose of communication, the best medium to use to communicate the message, and how receivers interpret the message
A) Collaboration B) Context C) Conciseness D) Clarity E) Channel
Which of the following is/are true about amounts received from shareholders for the firm's shares when the firm first issued them?
a. The firm assigns the par value of a share of stock at an amount it chooses. b. Par values are typically small, often $1 or less per share. c. Par values are rarely equal the amounts the firm receives when it issues the shares. d. The sum of the par value amount and the additional paid-in capital amount is the total amount received from shareholders. e. All of these answers are true.
Ichijo et al. (1998) suggest that effective knowledge management requires organisations to do which of the following:
a. generate, grade and grow knowledge workers b. create, capture and capitalise on knowledge c. manage, manipulate and motivate knowledge workers d. extract, express and exploit knowledge