1) If a company has a low dividend payout rate, it may be the result of restrictive debt covenants

A. Restrictive debt covenants

B. High flotation costs on new equity issues

C. High tax rates on dividends

D. All of the above

2) What are DRIPs?

A. Dividend reinvestment plans

B. Dividend residual interest participation

C. Dividend rollover incremental plans

D. Dividend rollover increases participation

3) You own 500 shares of a 220 stock. The company declares a for one split. He many shares do you own and what is the total value of the shares after the split.

A. 1000 shares 220,000

B. 500 shares 110,000

C. 1000 shares 110,000

D. 250 shares 220,000

4) The common shares of Ever held Ltd closed trading on 15 March at 21.50 on the LSE on 16 March it went ex-dividend in the amount of 0.50. All else equal at what price did ever held open on the 16^th?

A. 21.50

B. 22.00

C. 21.00

D. Its impossible to tell

5) The dividend process begins with which of the following?

A. Ex-dividend date

B. Record date

C. Declaration date

D. Payment date