1. When shareholders act on their own to alter a corporation's dividend policy by means of buying and selling on their own account they are creating A. A special dividend. B. A regular dividend. C.A residual dividend. D. A homemade dividend. E. A liquidating dividend. 2. The Winston Co. has 120,000 shares of stock outstanding. The current market value of the firm is $4.5 million. The company has retained earnings of $2.1 million. The company is planning a 3-for-1 stock split. What will the market price per share be after the split? A. $12.50 B. $25.00 C. $37.50 D. $56.25 E. $75.00 3. Growth firms which are more concerned about the firm's rate of growth than they are about maintaining constant dividends will adopt a (n) A. Special. B. Liquidating. dividend policy. C. Annual. D. Residual. E. Extra. 4. Cash dividends, if paid, are generally paid: A. On an annual basis provided there is sufficient net income to do so. B. On a quarterly basis as declared by the board of directors. C. Automatically unless the board of directors takes action to stop the payment. D. On the ex-dividend date of each quarter. E. From sources other than current or accumulated retained earnings. 5. The board of directors of DDT Inc. declared a dividend of $0.75 per share payable on Monday, January 28 to shareholders of record as of Monday, January 14. You owned 500 shares of DDT on Wednesday, January 9 when the price was $7.50 per share. Under TSX rules and assuming no taxes and perfect markets, if you sell your 500 shares of DDT on Friday, January 11, what price will you receive, all else the same? A. $3,000 B. $3,375 C. $3,500 D. $3,750 E. $4,250 SesameSweet Inc. has 220,000 shares outstanding with a market price of $12 per share. On the balance sheet. common stock is $760,000, and retained earnings are $275,000. There are no transactions costs