Answer : (a) a lower current ratio |
Explanation : Formula for current ratio = Current assets / Current liabilities |
When an internally financed cash dividend is paid, the current assets will decrease and there will be no change in the current liabilities due to this transaction. |
As in the current ratio, the current assets are in the numerator, decrease in current assets will result in lower current ratio. |
3. (Dividends and share repurchases: Basics) All other things being equal, the payment of an internally...
All other things being equal, the payment of an internally financed cash dividend is most likely to result in: a) a lower current ratio b) a higher current ratio c) the same current ratio
4. (Dividends and share repurchases: Basics) Devon Ltd. common shares sell at $40 a share and their estimated price-to-earnings ratio (P/E) is 32. If Devon borrows funds to repurchase shares at its after-tax cost of debt of 5%, its EPS is most likely to: (a) increase (b) decrease (c) remain the same
All things being equal, a capitalization of internally generated Goodwill would: Increase companies liabilities. Increase the companies reported non-current assets Decrease income Increase the return on assets
Other things being equal, the more frequent the compounding period, the: Select one: O a. higher the APR. O O b. higher the effective annual interest rate. c. lower the APR. O d. lower the effective annual interest rate.
other things being equal which of the following types of bonds should have lower yield to maturity a bond is a debenture a bond has no collateral all bonds should have the same yiled to maturity a bond is secured by land
All other things being equal, the price and yield on a bond are a. positively related b. negatively related c. sometimes positively and sometimes negatively related d. not related e. indefinitely related
The multiplier will be smaller, other things being equal: A. the smaller the fraction of each dollar earned that goes to taxes. B. the larger the fraction of each dollar of disposable income that is spent on imports. C. the smaller the fraction of each dollar of disposable income that goes to saving. D. All of these answers are true.
3. As a manager, which learning percentage would you prefer (all other things being equal), 1 10% or 60%? Would it change your answer if you found out that your competition has an average learning percentage of 55%? Explain your position for both scenarios. 3. As a manager, which learning percentage would you prefer (all other things being equal), 1 10% or 60%? Would it change your answer if you found out that your competition has an average learning percentage...
Which of the following is NOT correct? Multiple Choice Other things being equal, the more frequent the compouding period, the higher the APR. 0 The arguement that 900 dollars today worth more than 900 dollars one year from now is correct only when interest rate is positive. 0 Cash flows occuring in different periods should not be compared unless the flows have been discounted to a common date. 0 Other things being equal, the more frequent the compouding period, the...
According to Bernoulli's principle, all other things being equal, for a non-viscous incompressible fluid undergoing streamline flow: b) The greater the density of a fluid, the greater the buoyant force on any object submerged in the fluid. C) The pressure in a fluid is lower where the fluid is moving faster D) Air moves faster over an airplane wing than it does under. E) The deeper the position in an incompressible fluid, the greater the density of the fluid.