Laws prohibiting firm from paying dividends

Assignment Help Financial Management

Reference no: EM132068838

1. The primary purpose of laws prohibiting a firm from paying dividends that include its legal capital is to:

A) Reduce investors' tax liability

B) Ensure that the balance sheet balances

C) Prevent managers from paying out all the firm's assets

D) Prevent managers from paying large dividends

2. Both a stock split and a stock dividend will result in an increase in:

A) The number of shares outstanding

B) The market value of the firm

C) The total assets of the firm

D) Both the number of shares outstanding and the total assets of the firm

Reference no: EM132068838

Questions Cloud

The goal of managing working capital : The goal of managing working capital, such as inventory, should be to minimize the:

A revolving line of credit would be considered : A revolving line of credit would be considered. Which of the following would not be considered a use of cash?

Competition from overseas manufacturer with much lower costs : Pinto Limited has recently been subject to significant competition from overseas manufacturers with much lower costs.

Recommend entering market for strategic reasons : Planners often recommend entering a market for "strategic" reasons because the:

Laws prohibiting firm from paying dividends : The primary purpose of laws prohibiting a firm from paying dividends that include its legal capital is to:

Firm material precisions is considering starting new project : Suppose a firm Material Precisions is considering starting a new project, which requires financing of £5 million.

Using the adjusted present value method : Using the adjusted present value method, calculate the APV of the project. Should the company undertake the project?

At what point is inter vivos trust considered to be funded : what is the standard deviation of an equally weighted portfolio of A and B. At what point is an inter vivos trust considered to be funded?

High deductible are used in which financial market : High deductible are used in which financial market to help address the moral hazard problem?

User Account

All Pages