Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please answer all questions Empirical research indicates that, in general, companies send a positive signal to the marketplace when they announce an increase in the

please answer all questions
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
"Empirical research indicates that, in general, companies send a positive signal to the marketplace when they announce an increase in the dividend, and as a result share prices go up. This result definitely supports the bird-in-the-hand theory of dividend policy." True or false? Select one: O a True Ob. False "It is common practice in the currency markets that both the British pound and the euro are stated in direct quotation and the yen indirect quotation." True or false? Select one: O a True Ob. False "If the ATO (asset turnover) is too low, the firm should increase the sales or cut redundant assets." True or false? Select one: O a. True Ob False *The direct and the indirect quotation are inversely related; that is, the indirect quotation can be obtained by taking the reciprocal of the direct quotation, and vice versa." True or false? Select one: O a. True Ob False "Holding EBIT, tax rate, and total assets constant, the EVA is maximized if the firm is at its optimal capital structure." True or false? Select one: O a False Ob True "You would take a long position if you anticipate the price of the underlying asset to go up." True or false? Select one: O a False Ob True *If the firm has a high debt ratio, it also has a high equity multiplier." True or false? Select one: O a False Ob. True "Holding other factors constant, a lower dividend payout ratio raises the growth rate. But the higher growth rate does not necessarily increase the stock value." True or false? Select one: O a False O b. True "To improve EVA, the firm should raise its WACC." True or false? Select one: O a. True O b. False BBN Inc. had the following data for the year ending on 12/31: EBIT = $700; Total assets = $2,500; Corporate tax rate: 40% Weighted average cost of capital (WACCcomp): 10%. What was its economic value added (EVA)? Select one: O a. $170 O b. $190 Oc. $120 O d. $150

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Entrepreneurial Finance

Authors: Gary E. Gibbons, Robert D. Hisrich, Carlos Marques DaSilva

1st Edition

1452274177, 978-1452274171

More Books

Students also viewed these Finance questions

Question

=+ (d) Restrict the range of summation in (5.51) to 0x

Answered: 1 week ago