An increase in flotation costs will most likely result in which of the following?
A) larger dividend payments so shareholders are able to earn their required returns
B) no change in dividend policies because flotation costs are paid by purchasers of common
stock
C) larger dividend payments to offset higher taxes paid by investors
D) smaller dividend payments so that less external equity financing is needed
D
You might also like to view...
In addition to the counting operation allowable for nominal scale data, ordinal scales permit the use of statistics based on percentiles
Indicate whether the statement is true or false
Advertising and marketing are interchangeable terms
Indicate whether the statement is true or false
Which of the following statements about service department costs is not true?
A) Service department costs include the costs of providing services to other departments within an organization. B) Service department costs are not allocated to other service departments. C) Service department costs should be allocated using an allocation base or cost driver related to the costs incurred. D) Service department costs do not include the costs of providing services to external customers.
The perfect tender rule under the UCC obligates the seller to tender goods that exactly meet the requirements of the contract
Indicate whether the statement is true or false