Which of the following policies represents a compromise between a stable, predictable dividend and a constant payout ratio??
A. ?The Free cash flow policy
B. ?The Residual dividend policy
C. ?The Dividend reinvestment policy
D. ?The Constant payout ratio policy
E. ?The Low regular dividend plus extras policy
Answer: E
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Answer the following statements true (T) or false (F)
1. A stock split can involve issuing more shares of stock than authorized in the corporate charter. 2. A 3-for-1 stock split of a $3 par value share will result in three shares of $1 par value being issued for each share of $3 par value stock. 3. A memorandum entry is an entry in the journal that notes a significant event but has no debit or credit amount. 4. A small stock dividend, a large stock dividend and a stock split have no effect on total assets. 5. Small and large stock dividends have no effect on the Common Stock account.
Ross Corporation produces a single product. The company has direct materials costs of $8 per unit, direct labor costs of $6 per unit, and manufacturing overhead of $10 per unit. Sixty percent of the manufacturing overhead is for fixed costs. In addition, variable selling and administrative expenses are $2 per unit, and fixed selling and administrative expenses are $3 per unit at the current activity level. Assume that direct labor is a variable cost. Under variable costing, the unit product cost is:
A. $20 per unit B. $21 per unit C. $24 per unit D. $18 per unit
Steven makes a material misrepresentation of fact regarding his motorcycle to Thelma who agrees to buy the motorcycle based upon the misrepresentation. This contract is:
a. void. b. voidable. c. executed. d. unenforceable.
A hotel tracks the number of complaints per month. When the process is in control, there is an average of 35 complaints per month. Assume that a 2-sigma control limit is used. What is the lower control limit?
A) less than or equal to 15 B) more than 15 but less than or equal to 20 C) more than 20 but less than or equal to 25 D) more than 25