Tender offer repurchase is a repurchase program in which a firm ________. A) offers to repurchase a fixed number of shares, usually at a discount relative to the market value B) offers to repurchase a fixed number of shares, usually at a premium relative to the market value C) offers to repurchase a fixed number […]
Date: September 19th, 2020
Which of the following is a reason for a firm for repurchasing its shares? A) to diminish the shareholder value by increasing the number of shares outstanding and thereby raising earnings per share B) to help encourage a friendly takeover by increasing the number of publicly traded shares C) to make shares available for stock […]
Date: September 19th, 2020
The net effect of a stock repurchase is ________. A) similar to an interest payment B) similar to a cash dividend C) similar to a stock split D) similar to a reverse stock split ANSWER B
Date: September 19th, 2020
Which of the following is the least liquid current asset? A) Accruals B) Accounts receivable C) Marketable securities D) Inventory ANSWER D
Date: September 19th, 2020
Which of the following is true of a dividend payout? A) When a firm announces that it will increase its dividend, the share price usually decreases on that news. B) Dividend payments send a positive signal to investors in the marketplace that management believes that the stock is overvalued. C) When a firm pays out […]
Date: September 19th, 2020
Which of the following methods can be utilized by a firm when it wants to purchase outstanding shares of common stock? A) a purchase of stock through private placement B) a tender offer at varying prices C) a tender offer at a specified price D) an European auction plan ANSWER C
Date: September 19th, 2020
Which of the following is NOT be included as equity in a corporate balance sheet? A) Paid in capital B) Cash C) Common stock D) Retained earnings ANSWER B
Date: September 19th, 2020
Holders of record are stockholders whose names are recorded on the date of record receive the declared dividend. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
Which of the following type of firms are most likely to payout cash dividends? A) rapidly growing firms B) firms encouraging innovation C) large mature firms D) firms expanding their operations ANSWER C
Date: September 19th, 2020
Purchasers of a stock selling ex dividend receive the current dividend. Indicate whether the statement is true or false ANSWER FALSE
Date: September 19th, 2020
