Question 5 The distribution of a firm's earnings to its owners in the form of cash or assets is called: (5 marks) a. Dividends. b. Share repurchase. c. Payments. d. Stock splits. Question 6 A list of shareholders entitled to receive a declared dividend is prepared on the Cheques are sent to these shareholders on the date. (5 marks) date. a. Record; ex-rights. b. Record; payment. c. Declaration; ex-dividend. d. Payment; record. Question 7 A rights issue is: (5marks) a. Issuing an option directly to existing shareholders to acquire shares at a discount. b. Issuing an option to existing and new shareholders to acquire shares at a discount. c. Issuing a call option to existing shareholders with an indefinite maturity. d. Awarding special bonuses to management. Question 8 An investment banker working in the equity capital market makes money primarily by: (5 marks) a. Earning a percentage on each share sold. b. Earning a fixed fee for the services provided. c. Charging a flat fee for all services. d. None of the above