Quiz Ch 14 – Evaluating Drawbacks of Cash Dividends
Essentials of Corporate Finance
Ross, Westerfield, and Jordan
10th Edition
What is the disadvantage of cash dividends?
What is the disadvantage of cash dividends?
How many days before the date of record is the ex-dividend date typically set?
Which type of investor does not generally receive a tax break on dividend income?
Which factor is least likely to restrict a firm’s ability to pay cash dividends?
What influences the cost of capital when evaluating a capital project proposal?
Which action will reduce a firm’s cost of equity in the security market line approach, given a $2.40 annual dividend, a beta of 1.42, and all other factors remaining constant?
Which action will raise a firm’s cost of equity in the security market line approach, given a $3.36 annual dividend, a beta of 1.38, and all other factors remaining constant?
Which factor supports the argument that dividend policy is irrelevant?
What supports a high-dividend payout?
Which factor favors a low-dividend payout?