The Retained Earnings account for a profitable, growing company that has been in business for several decades are valuable to predicting future dividend declarations? Multiple Choice O Yes because Retained Earnings is money available to be distributed to shareholders. No because Retained Earnings is not money available to be distributed to shareholders. Dividends declaration depends on cash available only. None of the other alternatives are correct Retained Earnings and Dividends declarations are totally unrelated.

The Retained Earnings account for a profitable, growing company that has been in business for several decades are valuable to predicting future dividend declarations? Multiple Choice O Yes because Retained Earnings is money available to be distributed to shareholders. No because Retained Earnings is not money available to be distributed to shareholders. Dividends declaration depends on cash available only. None of the other alternatives are correct Retained Earnings and Dividends declarations are totally unrelated.

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter3: Evaluation Of Financial Performance

Section: Chapter Questions

Problem 12P

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During the first five years after incorporation, the entity did not declare dividends and funnels most cash to long-lived assets and R&D. When sales were starting to rise, small dividends were declared. This is supportive of which dividend theory? *A. Residual TheoryB. Life Cycle TheoryC. Dividend Signaling TheoryD. Trade-off Theory
A company’s dividend policy refers to the manner in which a firm distributes its earnings to shareholders. Firms can pay out cash in one of two ways: a dividend or a share repurchase. Before 1983, stock repurchases were fairly rare, but today they are common. When a firm decides to pay a dividend, it usually follows the following process. Several critical dates play a role in the dividend payment procedure. In the following table, identify the critical dividend dates. Check boxes that apply for each: Declaration Date Ex-Dividend Date Payment Date Holder-of-Record Date Dividend checks are sent to shareholders. Shares purchased on or after this date do not entitle investors to the stock’s dividend. All shareholders as of this date will be mailed a dividend check. The firm announces its intention to pay a dividend.
Which of the following statements are false? (you may choose more than one statement) A The issue of ordinary shares will not dilute ownership of the company B A rights issue will not dilute ownership of the company C A bonus issue is a means of raising finance for the business D A company can decide on the level of dividends they pay out to ordinary shareholders each year
In the attached article, what does it mean by the popular asserrtion that dividend increases usually convey good news to investors and dividend cuts convey bad news. https://www.investopedia.com/articles/fundamental/03/102903.asp What are dividends defined in simple terms? and what basic alternatives companies have regarding earnings?
Revaluation surplus of a company will be shown in a. Statement of cash flows b. iIt will be shown only in current liabilities c. It will not be shown anywhere d. Statement of changes in equity Which of the following effect is Correct for the payment of dividend by the company on Irredeemable preference shares? a. Increase Bank balance b. Increase Current liability c. Decrease Current liability d. Increase Retained earnings
Which of the following is not true with regard to the relationship between R&D expenses and the value of the company’s stock shares, as perceived by investors and analysts? Multiple Choice: A.There is no evidence that R&D expenses represent value-relevant information to investors. B. There is a causal relationship between R&D expenditures and future financial benefits. C. A $1 increase in R&D expenditures leads to a $5 increase in the market value of the company’s stock shares. D. Analysts adjust estimates of unrecorded R&D assets which are then used to adjust reported earnings and book values.
Which of the following statements is true? a. High liquidity means a company is short on cash and may be unable to pay its debts.b. When a company decides to go public through an IPO, it is typically targeting to sell its shares to only a handful of shareholders. c. If the company has a higher than expected extremely high profit this year, equity holders will benefit more than debt holders as debtholders are the residual claimers for the cash flows of the company.d. In the extreme case, the debt holders take legal ownership of the firm's assets through a process called bankruptcy.e. Equity holders expect to receive dividends and the firm is always legally obligated to pay them.
A gain or loss from one of the following transactions should not be included in determining income: a. receipt of interest from bank depositsb. sale of treasury sharesc. sale of plant and equipmentd. sale of product T Corporation’s retirement of its treasury shares resulted in the par value exceeding the cost. The difference should be: a. debited to APIC to the extent of the credit when the stock was issuedb. debited to retained earningsc. credited to APIC from previous treasury stock transactionsd. credited to APIC relating to the same issue Which of the following should be reported for capital stock? a. the shares authorizedb. the shares issuedc. the shares outstandingd. all of these
Which statement regarding dividends is false?a. Dividends represent a sharing of corporate profits withowners.b. Both stock and cash dividends reduce retained earnings.c. Cash dividends paid to stockholders reduce net income.d. None of the above statements are false.
The cost of retained earnings is less than the cost of new outside equity capital.Consequently, it is totally irrational for a firm to sell a new issue of stock and to pay cashdividends during the same year. Discuss the meaning of those statements.
Which of the following events would not improve (increase) a company’s return on equity? (Assume all else remains the same.) a. Retirement of long-term debt with cash b. Sale of common stock for cash c. Reduction in operating expenses Select one: b a and b a and c None of the events would improve a company’s return on equity. a c b and c plzz explain properly
Please answer with only simple explanation thank you! 1.) A gain or loss from one of the following transactions should not be included in determining income: receipt of interest from bank deposits sale of treasury shares sale of plant and equipment sale of product 2.) Corporation’s retirement of its treasury shares resulted in the par value exceeding the cost. The difference should be: debited to APIC to the extent of the credit when the stock was issued debited to retained earnings credited to APIC from previous treasury stock transactions credited to APIC relating to the same issue 3.) Which of the following should be reported for capital stock? the shares authorized the shares issued the shares outstanding all of these 4.) Which of the following would be classified in a different major section of a balance sheet from the others? capital stock…