Dividend Policy MCQs

?

On December 1, Noble Inc.’s Board of Directors declared a property dividend, payable in stock held in the Multon Company. The dividend was payable o...






?

Garland Corporation, a public company, has declared a property dividend of one share of its investment in Marlowe, Inc., for every 10 shares of its co...






?

Grand Corporation has 10,000,000 shares of $10 par-value stock authorized, of which 2,000,000 shares are issued and outstanding. The Board of Director...






?

Fox Company has 1,000,000 shares of common stock authorized, of which 100,000 shares are held as treasury shares; the remainder are held by the compan...






?

Bertram Company had a balance of $100,000 in retained earnings at the beginning of the year and of $125,000 at the end of the year. Net income for thi...






?

How would a stock split affect the par value of the stock and the companys shareholders equity? Par Value... Shareholders Equity






?

An undistributed stock dividend declared by the Board of Directors should be reported as a(n)






?

Which one of the following statements regarding dividends is correct?






?

Which one of the following transactions does not affect the balance of retained earnings?






?

Underhall, Inc.s common stock is currently selling for $108 per share. Underhall is planning a new stock issue in the near future and would like to s...






?

When preparing the statement of cash flows, companies are required to report separately as operating cash flows all of the following except






?

Green Corp. owns 30% of the outstanding common stock and 100% of the outstanding noncumulative nonvoting preferred stock of Axel Corp. In Year 1, Axe...






?

On July 1, Year 1, Denver Corp. purchased 3,000 shares of Eagle Co.s 10,000 outstanding shares of common stock for $20 per share but did not elect t...






?

In practice, dividends






?

Residco, Inc., expects net income of $800,000 for the next fiscal year. Its targeted and current capital structure is 40% debt and 60% common equity. ...






?

A firms dividend policy may treat dividends either as the residual part of a financing decision or as an active policy strategy. Treating dividend...






?

A firms dividend policy may treat dividends either as the residual part of a financing decision or as an active policy strategy. Treating dividends ...






?

A stock dividend






?

A 10% stock dividend most likely






?

Brady Corporation has 6,000 shares of 5% cumulative, $100 par value preferred stock outstanding and 200,000 shares of common stock outstanding. Brady...






?

When a company desires to increase the market value per share of common stock, the company will implement






?

Arch, Inc., has 200,000 shares of common stock outstanding. Net income for the recently ended fiscal year was $500,000, and the stock has a price- ear...






?

On August 15, National Corporation announced a 1-for-10 reverse split, the event to occur on September 6, subject to shareholder approval. The stocks...






?

XYZ Corp. has 1,000 shares outstanding and retained earnings of $25,000. Theoretically, what would you expect to happen to the price of XYZ stock, cur...






?

If a company uses the residual dividend policy, it will pay






?

Stock dividends and stock splits differ in that






?

If the capital gains were taxed at a lower rate than regular dividend income, then the the dividend payout percentage of a company, the , everything ...






?

On December , Charles Companys board of directors declared a cash dividend of $1.00 per share on the 50,000 shares of common stock outstanding. The c...






?

A company following a residual dividend payout policy will pay higher dividends when, everything else equal, it has






?

The date when the right to a dividend expires is called the






?

The policy decision that by itself is least likely to affect the value of the firm is the






?

Which of the following types of dividends do not reduce equity in the corporation?






?

A company has 1,000 shares of $10 par value common stock and $5,000 of retained earnings. Two proposals are under consideration. The first is a stock ...






?

A company has 1,000 shares of $10 par value common stock and $5,000 of retained earnings. Two proposals are under consideration. The first is a stock ...






?

A company declares and pays both a $200,000 cash dividend and a 10% stock dividend. The effect of the dividend is to . List A List B






?

The purchase of treasury stock with a firms surplus cash






?

Jensen Corporations board of directors met on June 3 and declared a regular quarterly cash dividend of $.40 per share for a total value of $200,000. ...






?

Jensen Corporations board of directors met on June 3 and declared a regular quarterly cash dividend of $.40 per share for a total value of $200,000. ...






?

Excerpts from the statement of financial position for Landau Corporation as of September 30 of the current year are presented as follows. Cash $ 950,...






?

Excerpts from the statement of financial position for Landau Corporation as of September 30 of the current year are presented as follows. Cash $ 950,...






?

Excerpts from the statement of financial position for Landau Corporation as of September 30 of the current year are presented as follows. Cash $ 950,...






?

Which one of the following best describes the record date as it pertains to common stock?






?

James Hemming, the chief financial officer of a midwestern machine parts manufacturer, is considering splitting the companys stock, which is currentl...






?

The residual theory of dividends argues that dividends






?

When determining the amount of dividends to be declared, the most important factor to consider is the






?

Kalamazoo, Inc., has issued 25,000 shares of its authorized 50,000 shares of common stock. There are 5,000 shares of common stock that have been repur...






?

Plack Co. purchased 10,000 shares (2% ownership) of Ty Corp. on February 14, year 1. Plack received a stock dividend of 2,000 shares on April 30, ye...






?

At December 31, year 2 and year 3, Apex Co. had 3,000 shares of $100 par, 5% cumulative preferred stock outstanding. No dividends were in arrears as...






?

East Corp., a calendar-year company, had sufficient retained earnings in year 1 as a basis for dividends, but was temporarily short of cash. East de...






?

On January 2, year 2, Lake Mining Co.s board of directors declared a cash dividend of $400,000 to stockholders of record on January 18, year 2, pay...






?

On June 27, year 1, Brite Co. distributed to its common stockholders 100,000 outstanding common shares of its investment in Quik, Inc., an unrelated...






?

On December 1, year 1, Nilo Corp. declared a property dividend of marketable securities to be distributed on December 31, year 1, to stockholders of...






?

Ole Corp. declared and paid a liquidating dividend of $100,000. This distribution resulted in a decrease in Oles Paid-in capital Retained earnings






?

Instead of the usual cash dividend, Evie Corp. declared and distributed a property dividend from its overstocked merchandise. The excess of the merc...






?

Ray Corp. declared a 5% stock dividend on its 10,000 issued and outstanding shares of $2 par value common stock, which had a fair value of $5 per sh...






?

How would total stockholders equity be affected by the declaration of each of the following? Stock dividend Stock split






?

On July 1, year 1, Bart Corporation has 200,000 shares of $10 par common stock outstanding and the market price of the stock is $12 per share. On th...






?

How would a stock split in which the par value per share decreases in proportion to the number of additional shares issued affect each of the follow...






?

How would a stock split in which the par value per share decreases in proportion to the number of additional shares issued affect each of the follow...






?

Wood Co. owns 2,000 shares of Arlo, Inc.s 20,000 shares of $100 par, 6% cumulative, nonparticipating preferred stock and 1,000 shares (2%) of Arlo...






?

Stock dividends on common stock should be recorded at their fair value by the investor when the related investment is accounted for under which of t...






?

On March 4, year 1, Evan Co. purchased 1,000 shares of LVC common stock at $80 per share. On September 26, year 1, Evan received 1,000 stock rights ...






?

Zwick Company bought 28,000 shares of the voting common stock of Handy Corporation in January 2011. In December, Hart announced $200,000 net income fo...