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LEARNING OBJECTIVE: Recognize key terms associated with shareh dividends. OOD Raheem bought stock in a tech company that had just announced a dividend. He did
LEARNING OBJECTIVE: Recognize key terms associated with shareh dividends. OOD Raheem bought stock in a tech company that had just announced a dividend. He did not receive the dividend even though the record date had not yet passed when he purchased it. date. This is because he purchased the stock on or after the o a.) payment O b.) ex-dividend O c.) declaration d.) in-dividend LEARNING OBJECTIVE: Examine the advantages and disadvantages of issuing stock dividends, cash dividends, or no dividends at all. Why might investors prefer stock dividends over cash dividends? a.) If they are seeking short-term liquidity O b.) If they are seeking flexibility c.) If they are seeking a predictable income stream d.) If they are seeking a stable share price SUBMIT MY ANSWER LEARNING OBJECTIVE: Examine the residual dividend model. According to the residual dividend model, what would a company do if its net income is less than its financing needs for planned projects? a.) Distribute no cash dividends b.) Distribute the same dividend as in the past, for the sake of consistency c.) Set a target payout ratio d.) Determine if investors prefer cash of stock dividends OOD Eadie owns 300 shares of stock in Company A that were valued at $2/share. After Company A announces a 3-to-1 reverse stock split, Eadie calculates that she will own a.) 900 shares valued at $0.67/share O b.) 900 shares valued at $2/share o c.) 100 shares valued at $6/share O d.) 100 shares valued at $2/share
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