The theory that investors regard dividend changes as signals of management's earnings forecasts is called the _____.
A. information content hypothesis
B. stock splits theory
C. capital structure effect
D. weighted average hypothesis
E. residual earnings policy
Answer: A
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Return on assets ratio
a. Market price per share b. Net sales c. Gross profit d. Average total assets e. Interest expense, net of tax f. Net income g. Total liabilities h. Total assets
An experimental design in which the experimental group is exposed to the treatment but the control group is not and no pretest measure is taken is called the posttest-only control group design
Indicate whether the statement is true or false
Assuming that the Morocco Desk Co purchases 8,000 feet of lumber at $6.00 per foot and the standard price for direct materials is $5.00, the entry to record the purchase and unfavorable direct materials price variance is:
A) Direct Materials 40,000Direct Materials Price Variance 8,000Accounts Payable 48,000 B) Direct Materials 40,000Accounts Payable 40,000 C) Direct Materials 48,000Direct Materials Price Variance 8,000Accounts Payable 40,000 D) Work in Process 48,000Direct Materials Price Variance 8,000Accounts Payable 40,000
Xavier and Yolonda have original investments of $50,000 and $100,000 respectively in a partnership. The articles of partnership include the following provisions regarding the division of net income: interest on original investment at 15%, salary allowances of $22,000 and $20,000 respectively, and the remainder equally. How much of the net income of $90,000 is allocated to Xavier?
A) $30,250 B) $47,750 C) $45,000 D) $42,250