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: 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.
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 often lead to a decrease in the share price.
True or false: Stock split announcements are often seen by investors as signals of management’s positive outlook for the future.
True or false: Stock splits result in price changes, whereas stock dividends do NOT affect stock prices.
True or false: Delaying the realization of capital gains results in a reduced present value of the tax liability.