Quiz Ch 16 – Cash Distribution Methods to Shareholders: Evaluating Options for Firms
Principles of Corporate Finance
Brealey, Myers, and Allen
13th Edition
In what ways can firms distribute cash to their shareholders?
In what ways can firms distribute cash to their shareholders?
Who has the authority to decide and announce changes in dividend policy?
Which type/s of dividends are never distributed in the form of cash?
What term is used to refer to the par value of outstanding shares?
How is the announcement of a dividend rise interpreted by investors?
True or false: Managers steer clear of lowering dividends for their stocks.
True or false: The enactment of SEC’s Rule 10b-18 shields companies from potential legal consequences for manipulating share prices through repurchases.
True or false: When utilizing tender offers for share repurchase, companies commonly propose a stock price that surpasses the current market value.
True or false: Cash dividends and stock dividends are avenues for companies to distribute cash to shareholders.