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Which of the following dividend policies would be least appropriate for a company with a large amount of surplus cash in its balance sheet? OA. Zero dividend payout O B. Special dividend payments OC Fixed payout ratio

Which of the following dividend policies would be least appropriate for a company with a large amount of surplus cash in its balance sheet? OA. Zero dividend payout O B. Special dividend payments OC Fixed payout ratio

EBK CONTEMPORARY FINANCIAL MANAGEMENT
EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter12: The Cost Of Capital
Section: Chapter Questions
Problem 5P
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QUESTION 8 Which of the following dividend policies would be least appropriate for a company with a large amount of surplus cash in its balance sheet? OA. Zero dividend payout O B. Special dividend payments OC. Fixed payout ratio O D. Steadily increasing nominal dividend payment O E. Constant real dividend payments
Transcribed Image Text:QUESTION 8 Which of the following dividend policies would be least appropriate for a company with a large amount of surplus cash in its balance sheet? OA. Zero dividend payout O B. Special dividend payments OC. Fixed payout ratio O D. Steadily increasing nominal dividend payment O E. Constant real dividend payments
QUESTION 7 CCB plc has just declared a dividend of 15p per ordinary share. Given that the company's shareholders require a return of 12% per year and that they expect future dividends to grow at an annual rate of 6%, what is the ex div share price predicted by the dividend growth model? O A. £2.65 O B. £2.50 OC. £3.53 OD.£1.25 O E. £2.57
Transcribed Image Text:QUESTION 7 CCB plc has just declared a dividend of 15p per ordinary share. Given that the company's shareholders require a return of 12% per year and that they expect future dividends to grow at an annual rate of 6%, what is the ex div share price predicted by the dividend growth model? O A. £2.65 O B. £2.50 OC. £3.53 OD.£1.25 O E. £2.57
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