Managers have been characterized as reluctant to increase dividends if: Multiple Choice dividends were increased in...
Managers have been characterized as reluctant to increase dividends if:
Multiple Choice
dividends were increased in the preceding year.
earnings have permanently increased.
the dividend increase cannot be sustained.
the dividend payout ratio exceeds 20%.
Homework Answers
Answer: The third option is correct
Managers have been characterized as reluctant to increase dividends
if the dividend increase cannot be sustained
Add Answer to:
Managers have been characterized as reluctant to increase
dividends if:
Multiple Choice
dividends were increased in...
Which of the following statements concerning stock dividends is correct? Multiple Choice The declaration of a...
Which of the following statements concerning stock dividends is correct? Multiple Choice The declaration of a stock dividend should not be recorded as a liability even though it has not yet been issued. O The issuance of a stock dividend increases total stockholders' equity. Oo oo Courts generally have held that stock dividends, once declared, are irrevocable by the board of directors, therefore, a stock dividend declared, but not yet issued is o liability Astock dividend cannot use treasury stock
ABC Inc. has earnings that have been growing at 30% per year. Next year’s earnings are projected ...
ABC Inc. has earnings that have been growing at 30% per year. Next year’s earnings are projected to be $0.35 per share. The managers at ABC are aware that this growth will slow soon. In part, this awareness comes from the fact that investment opportunities are thinner than they once were. Managers anticipate that after next year’s earnings, earnings growth will slow to 20% per year for two years. A dividend payment will be initiated at this point (paid in...
Which of the following is a true statement? Multiple Choice Expenses increase owners’ equity and decrease...
Which of the following is a true statement? Multiple Choice Expenses increase owners’ equity and decrease liabilities. Revenue decreases owners’ equity and expenses increase owners’ equity. Revenue increases owners’ equity and expenses decrease owners’ equity. Revenue decreases owners’ equity and increases liabilities. Which of the following statements is not true regarding the adoption of ASC Topic 606 guidance for revenue recognition? Multiple Choice When using the cumulative approach, the prior three years of financial statements need to be restated. Under...
Planners have determined that sales will increase by 20% next year, and the profit margin will...
Planners have determined that sales will increase by 20% next year, and the profit margin will remain at 10% of sales. Which one of the following statements is correct if the payout ratio remains at 30% A. Net Income will increase by 10% next year B. The addition to retained earnings will increase by 20% next year C. The dividend will increase by 6% next year D. The addition to retained earnings will equal 6% of the sales increase next...
If liabilities are $53,000 and assets are $173,500, then equity equals: Multiple Choice $120,500 $173,500 $226,500...
If liabilities are $53,000 and assets are $173,500, then equity equals: Multiple Choice $120,500 $173,500 $226,500 $53,000 If the liabilities of a business increased $83,000 during a period of time and the equity in the business decreased $34,000 during the same period, the assets of the business must have: Multiple Choice Decreased $117,000 Decreased $49,000 Increased $49,000 Beta Corporation purchased $160,000 worth of land by paying 16,000 cash and signing a $144,000 mortgage. Immediately prior to this transaction the corporation...
Stocks that pay relatively large cash dividends on a regular basis are called: Multiple Choice Small...
Stocks that pay relatively large cash dividends on a regular basis are called: Multiple Choice Small capital stocks. Mid capital stocks. Growth stocks. Large capital stocks. Income stocks. The amount of annual cash dividends distributed to common shareholders relative to the common stock's market value is the: Multiple Choice Dividend payout ratio Dividend yield Price-earnings ratio. Current yield Earnings per share. Corporations may buy back their own stock for any of the following reasons except to: Multiple Choice Avoid a...
Please help with all multiple choice and blanks! Thanks! Fuzzy Button Clothing Company has the following...
Please help with all multiple choice and blanks! Thanks!
Fuzzy Button Clothing Company has the following end-of-year balance sheet: Fuzzy Button Clothing Company Balance Sheet For the Year Ended on December 31 Liabilities Assets Current Liabilities Accounts payable Current Assets: Cash and equivalents $150,000 $250,000 Accounts receivable Accrued liabilities 400,000 150,000 Notes payable Inventories 350,000 100,000 Total Current Assets $900,000 Total Current Liabilities $500,000 Net Fixed Assets Long-Term Bonds 1,000,000 Net plant and equipment $2,100,000 Total Debt $1,500,000 (cost minus...
Which of the following is an example of fiscal stimulus? Multiple Choice an increase in government...
Which of the following is an example of fiscal stimulus? Multiple Choice an increase in government spending on new military jet fighters an increase in consumption because of improved consumer confidence an increase in personal income taxes for families with children an increase in the purchase of office buildings by foreign investors If consumers spend 98 cents out of every extra dollar received, the Multiple Choice marginal propensity to consume is 98. marginal propensity to save is 1.02. marginal propensity...
A primary driver of an increase in stock price is profitability. Which of the following ratios...
A primary driver of an increase in stock price is profitability. Which of the following ratios is used to evaluate stockholder profitability? a. Dividend yield b. Total payout ratio c. Dividend payout ratio d. Earnings per share ABC Corporation had $125,000 of net income for the year. Assume the company, which has no preferred stock, paid a $10 per share dividend at the time the stock was selling for $50 per share and there were 25,000 shares of $1 par...
1. Home Realty, Incorporated, has been operating for three years and is owned by three investors....
1. Home Realty, Incorporated, has been operating for three years
and is owned by three investors. J. Doe owns 60 percent of the
total outstanding stock of 9,000 shares and is the managing
executive in charge. On December 31, the following financial items
for the entire year were determined: sales revenue, $186,000;
salaries and wages expense, $101,000; interest expense, $6,700;
advertising expenses, $9,225; and income tax expense, $18,900. Also
during the year, the company declared and paid the owners dividends...
Which of the following statements concerning stock dividends is correct? Multiple Choice The declaration of a stock dividend should not be recorded as a liability even though it has not yet been issued. O The issuance of a stock dividend increases total stockholders' equity. Oo oo Courts generally have held that stock dividends, once declared, are irrevocable by the board of directors, therefore, a stock dividend declared, but not yet issued is o liability Astock dividend cannot use treasury stock
If liabilities are $53,000 and assets are $173,500, then equity equals: Multiple Choice $120,500 $173,500 $226,500 $53,000 If the liabilities of a business increased $83,000 during a period of time and the equity in the business decreased $34,000 during the same period, the assets of the business must have: Multiple Choice Decreased $117,000 Decreased $49,000 Increased $49,000 Beta Corporation purchased $160,000 worth of land by paying 16,000 cash and signing a $144,000 mortgage. Immediately prior to this transaction the corporation...
Stocks that pay relatively large cash dividends on a regular basis are called: Multiple Choice Small capital stocks. Mid capital stocks. Growth stocks. Large capital stocks. Income stocks. The amount of annual cash dividends distributed to common shareholders relative to the common stock's market value is the: Multiple Choice Dividend payout ratio Dividend yield Price-earnings ratio. Current yield Earnings per share. Corporations may buy back their own stock for any of the following reasons except to: Multiple Choice Avoid a...
Please help with all multiple choice and blanks! Thanks!
Fuzzy Button Clothing Company has the following end-of-year balance sheet: Fuzzy Button Clothing Company Balance Sheet For the Year Ended on December 31 Liabilities Assets Current Liabilities Accounts payable Current Assets: Cash and equivalents $150,000 $250,000 Accounts receivable Accrued liabilities 400,000 150,000 Notes payable Inventories 350,000 100,000 Total Current Assets $900,000 Total Current Liabilities $500,000 Net Fixed Assets Long-Term Bonds 1,000,000 Net plant and equipment $2,100,000 Total Debt $1,500,000 (cost minus...
A primary driver of an increase in stock price is profitability. Which of the following ratios is used to evaluate stockholder profitability? a. Dividend yield b. Total payout ratio c. Dividend payout ratio d. Earnings per share ABC Corporation had $125,000 of net income for the year. Assume the company, which has no preferred stock, paid a $10 per share dividend at the time the stock was selling for $50 per share and there were 25,000 shares of $1 par...
1. Home Realty, Incorporated, has been operating for three years
and is owned by three investors. J. Doe owns 60 percent of the
total outstanding stock of 9,000 shares and is the managing
executive in charge. On December 31, the following financial items
for the entire year were determined: sales revenue, $186,000;
salaries and wages expense, $101,000; interest expense, $6,700;
advertising expenses, $9,225; and income tax expense, $18,900. Also
during the year, the company declared and paid the owners dividends...
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