The firm follows a residual dividend policy

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Reference no: EM131322236

1. _______________ are when the firm buys back a set number of shares on a set date for a specific price.

a. Stock Splits

b. Open Market Repurchases

c. Dividend Reinvestment Plans

d. Tender Offer Repurchases

2. A firm has Net Income of $600,000, capital expenditures of $500,000, and a target debt ratio of 60%. If the firm follows a residual dividend policy, then what is their payout ratio?

a. 28%

b. 36%

c. 48%

d. 67%

Reference no: EM131322236

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