Quiz Ch 17 – T/F Eligibility for Dividends Based on Record Date
Fundamentals of Corporate Finance
Brealey, Myers, and Marcus
10th Edition
True or false: Shares purchased on the record date do not have the right to receive the dividend.
True or false: Shares purchased on the record date do not have the right to receive the dividend.
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.
True or false: In recent years, a significant portion of U.S. corporations, over 40%, refrained from both dividend payments and share repurchases.
True or false: Stock repurchases have gained popularity as a means of distributing cash over the last three decades.
True or false: A two-for-one stock split is effectively the same as receiving a 200% stock dividend.
What is the outcome of a 10% stock repurchase by a corporation?
What does a corporation with an automatic reinvestment plan typically do in terms of dividends and shareholder options?
What is the correct sequence of key dividend dates?