False about cash dividend and stock split

Assignment Help Financial Management

Reference no: EM131869746

1. Which statement is false about cash dividend?

A. Tax-exempt investors usually like low dividend firms.

B. Managers are reluctant to cut dividends

C. Managers smooth dividends

D. Dividends are concentrated among a small number of large, mature firms

E. Clientele effect means stocks attract particular groups based on dividend yield and the resulting tax effects

2. Which statement is false about stock split?

A. A stock split is a corporate action in which a company divides its existing shares into multiple shares

B. A stock split is essentially the same as a stock dividend except expressed as a ratio

C. The purpose of a stock split is to increase stock price

D. Stock splits increase the number of shares outstanding E Stock splits help increase the liquidity of a stock.

Reference no: EM131869746

Questions Cloud

What is the firm dividend payout ratio : If the residual dividend policy is used, what is the firm’s dividend payout ratio?

Compute the asset turnover ratio : Compute the asset turnover ratio.

Obtains all the proxies for the uncommitted votes : How many directors can Mr. Clark be sure of electing? How many directors could Mr. Clark elect if he obtains all the proxies for the uncommitted votes?

International intrabank transfers between participating bank : A real time transmitting and settling in US dollars system for international intrabank transfers between participating banks is called

False about cash dividend and stock split : Which statement is false about cash dividend? Which statement is false about stock split?

What are some important elements of the collection policy : What are some important elements of the collection policy?

Various valuation methods are rarely used simultaneously : Valuation is the process by which forecasts of performance are converted into estimates of price. Various valuation methods are rarely used simultaneously.

Customers who want to try selfie authentication : MasterCard has developed an application for customers who want to try selfie authentication. They will have to:

What is the default risk premium on corporate bonds : A company's 5-year bonds are yielding 9.55% per year. what is the default risk premium on the corporate bonds?

User Account

All Pages