Quiz Ch 16 – Rightist View on Market Rewards: Factors Impacting Firms
Principles of Corporate Finance
Brealey, Myers, and Allen
13th Edition
How does the rightist position view the market’s recognition and reward for firms?
How does the rightist position view the market’s recognition and reward for firms?
When do firms commonly undertake stock repurchases?
True or false: It is assumed that the firm’s investment and debt policies are both established and unchanging in the argument of dividend irrelevance by Miller and Modigliani.
True or false: It is presumed that the firm can issue new shares at a justifiable price according to the dividend irrelevance argument by Miller and Modigliani.
True or false: Australia utilizes an imputation tax system for the taxation of dividends.
True or false: Firms employ dividend payments as a means to adjust their capital structure by exchanging equity for debt.
True or false: Weak firms face challenges in adopting a high-dividend policy due to potential cash constraints.
True or false: Healy and Palepu observed that, on average, the stock price of firms announcing a cessation of dividends declined by 9.5 percent.
True or false: JPMorgan Chase’s decision to decrease its dividend to $0.05 per share in 2009 resulted in growth in the bank’s share price.
True or false: It is common for firms to define long-term target dividend payout ratios.