Question 24 pts What is a dividend reinvestment program? It is used to reduce the taxes paid on the dividends It is used to eliminate transaction costs Transfers the cost of investing from the firm to the stockholder A company sells their old shares commission free Question 25 1 pts Stockholders of company's that pay dividends do not have a choice but to receive the dividends and pay the taxes on the dividends, or else they cannot own the stock. True False U Question 26 1 pts Question 26 ABC Company had to close its business and sell all of its assets in 2020 as it has been a tough year. The proceeds from this sale were paid out to the shareholders as well as creditors. This is an example of a: Liquidating dividend Extra dividend Special dividend Regular dividend Question 27 1 pts The is trading is the first date that shares will be traded without rights to the dividend. Before this date, the share and after this date, the share is trading Board vote; ex dividend; cum dividend Payable date: cum dividend; ex dividend Declaration date: ex dividend: cum dividend Ex dividend date: cum dividend; ex dividend Question 28 Repurchase programs are less flexible than dividend programs because they involve repurchasing stock from many different holders. True False Question 29 1 pts Which of the following is not a characteristic of a stock dividend? A stock dividend distributes new shares of stock to existing shareholders After a stock dividend the value of the total assets in the company changes A stock dividends can be done to make the shares more attractive to investors All of the above are characteristics of a stock dividend j nts Which of the following is not a key conclusion made by John Lintner? Managers focus less on dividend changes and more on the dollar amount of the dividend Dividend changes follow shifts in long-term sustainable earnings Managers don't like to make dividend changes that might end up being reversed Firms have long term target payout ratios D Question 31 1 pts When a public company announces that they will begin to issue a regular cash dividend, the stock price increases by an average of: 2.5% 3.5% 3% 196 Question 32 1 pts QUSLIUI 2 1 pts Which of the following is false? Dividends and stock repurchases are accounted for differently on the balance sheet When a company repurchases its own shares, it can change the ownership of the company When a shareholder sells shares back to the company, the shareholder is only taxed on the profit from the sale, rather than the total sale price When a company with a small number of shares in the market repurchases the shares for a lot of cash, there will be more liquidity for the remaining shares Question 33 1 pts On the ex-dividend date, the price of a company's shares will change even if there has been no new information released about the company. True False
