True of diamond-firm that has dividend payout ratio

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Reference no: EM131911738

1. On the corporation's balance sheet, the par value of the stock is $2, and Total owners' equity is $1,000,000.

If the corporation has a "2-for-1" stock split, what will these values be AFTER the split?

a. The par value of the stock is $1, and Total owners' equity is $1,000,000.

b. The par value of the stock is $4, and Total owners' equity is $1,000,000.

c. The par value of the stock is $1, and Total owners' equity is $500,000.

d. The par value of the stock is $1, and Total owners' equity is $2,000,000.

2. Which of the following is true of Diamond, a firm that has a dividend payout ratio = 100%?

Earnings Per Share / Dividends per share = 50%

Earnings Per Share / Dividends per share = 0%

Earnings Per Share / Dividends per share = 100%

None of the Above

Reference no: EM131911738

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