Answer the following statements true (T) or false (F)
1. The overriding objective of the capital structure decision should be to choose the level of debt that results in the largest possible share price.
2. Firms having stable and predictable revenues can more safely employ highly leveraged capital structures than can firms with volatile patterns of sales revenue.
3. Payout policy refers to the decisions that firms make about whether to distribute cash to shareholders, how much cash to distribute, and by what means the cash should be distributed.
4. Rapidly growing firms pay high dividends to shareholders.
5. Dividends are the only means by which firms can distribute cash to shareholders.
1. TRUE
2. TRUE
3. TRUE
4. FALSE
5. FALSE
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What will be an ideal response?
Which suppliers of funds bear the greatest risk and should therefore earn the greatest return?
a. Bondholders b. Suppliers c. General creditors such as banks d. Preferred shareholders e. Common shareholders
_______________________________ occurs when negotiations at a target company are used to set a standard for later negotiations thus helping unions take wages out of competition.
Fill in the blank(s) with the appropriate word(s).
Why is it necessary to assess end user's experiences when comparing alternative human resource information system (HRIS)?
What will be an ideal response?