Quiz Ch 17 – T/F Comparing Dividend and Earnings Volatility
Fundamentals of Corporate Finance
Brealey, Myers, and Marcus
10th Edition
True or false: Corporate dividends tend to exhibit lower volatility compared to corporate earnings.
True or false: Corporate dividends tend to exhibit lower volatility compared to corporate earnings.
True or false: Stock repurchases exhibit higher volatility compared to dividends.
True or false: To maintain a steady payout ratio, dividends are likely to be adjusted in line with fluctuations in earnings.
True or false: Shareholders listed in the company’s books on the payment date receive dividends.
True or false: Dividends are distributed to shareholders listed on the company’s books on the record date.
True or false: Shares purchased on the record date do not have the right to receive the dividend.
True or false: Companies can boost their stock price by adjusting dividends to attract the group of investors who favor high-dividend stocks.
True or false: Any shareholder who holds a stock before its ex-dividend date is eligible to receive the dividend.
True or false: When it comes to dividends, an increase typically conveys good news about cash flow and earnings, while a decrease communicates bad news.
True or false: According to MM’s dividend irrelevance theory, investors won’t place higher valuations on companies with greater dividend payouts because they can convert shares to cash independently of dividends.