Which of the following statements is CORRECT?
A. Firms with a lot of good investment opportunities and a relatively small amount of cash tend to have above-average dividend payout ratios.
B. One advantage of the residual dividend model is that it leads to a stable dividend payout, which investors like.
C. An increase in the stock price when a company cuts its dividend is consistent with signaling theory as postulated by MM.
D. If the "clientele effect" is correct, then for a company whose earnings fluctuate, a policy of paying a constant percentage of net income will probably maximize its stock price.
E. Stock repurchases make the most sense at times when a company believes its stock is undervalued.
Answer: E
You might also like to view...
If the estimated cost driver level is overstated, the
a. predetermined overhead rate will be understated. b. predetermined overhead rate will be overstated. c. product cost will be overstated. d. cost pool will be understated.
Steps in solving problems do NOT include which of the following?
a. Bring up as many issues as possible now that you have the chance. b. Brainstorm possible solutions. c. Select the solution that has the best chance to resolve the problem. d. Implement the plan that is agreed upon. e. Evaluate how effectively the problem was resolved.
A jury that cannot come to a unanimous decision about the defendant's guilt is called a(n) ________ jury.
A. grand B. open C. struck D. hung
Formal work measurement techniques estimate average times for each step in a process by relying on the judgment of skilled observers
Indicate whether the statement is true or false