In determining an appropriate dividend policy, an essential matter that should be considered is how imputation credits will impact the firm's interest payments.
Select one:
True
False
False
The dividend policy is not determined based on how imputation
credits will impact the firm's interest payments
In determining an appropriate dividend policy, an essential matter that should be considered is how imputation...
List and discuss contingency variables that should be considered in determining an appropriate structure in organizational design. 2 pages.
In general, what impact should a firm's use of financial leverage have on its dividend policy?
1) Determining monetary policy goals is difficult because: A. Policy makers must recognize that monetary policy should be changed B. The most appropriate action must be determined and implemented C. Policy initiatives must be timed to achieve the desired influence upon the economy D. All of the above 2) Federal law requires that the Fed Select one: A. report to the Congress regarding the economy and price stability twice each year. B. meet target ranges for growth in the money...
Working capital is considered to be one of the prime indicators of liquidity. True False Question 10 (1 point) The operating cash flow/total debt ratio is one that indicates a firm's ability to meet its current maturities of debt. True False Question 11 (1 point) Management should not use the statement of cash flows for which of the following purposes? To determine cash flow from financing activities To determine the balance in accounts receivable To determine cash low from investing...
Explain how fiscal policy (government spending and taxes) and monetary policy (determining interest rates) affect the level of output and employment in the economy according to Keynesian theory. What fiscal and monetary policies should the government follow to pull the economy out of a recession?
a) Some economists claim that the government should always use monetary policy to stabilize (or target) the real interest rate in the short-run if they also wish to keep the resulting impact on (changes to) consumption to a minimum. Is this claim true, false or uncertain? Explain by using words and one IS/LM diagram. b) The government should always use monetary policy to combat the effect of business cycle fluctuations coming from changes in autonomous government spending on goods &...
165 9. Which of the following should not be considered to be a supply side policy? a. a decrease in the deficit b. a reduction of the tax on consumption c. a middle class tax cut d. none of the above 10. Whenever the aggregate supply curve shifts, the short rur aggregate supply curve also shifts. However, it is not the case that whenever the short run aggregate supply curve shifts, the long run aggregate supply curve also shifts. a....
1. True or False? The larger the firm's TIE ratio, the less times a firm can pay its interest expenses. 2. True or False? Your firm has a debt to equity ratio of 55%, and its biggest competitor has a debt to equity ratio of 66%. Based on this information, your firm is less levered. 3. True or False? A dividend payout ratio larger than 50% indicates a firm retains more than it pays out to shareholders. 4. True or...
Which of the following statements is true? expansionary fiscal policy is appropriate to combat economic downturn The Fed should reduce the discount rate to combat economic downturn an increase in inflation rate tends to bring down real interest rates, holding everything else constant A $1 increase in government spending tends to raise GDP by more than $1 any one of the answers is correct.
1. Dividend policy A firm’s value depends on its expected free cash flow and its cost of capital. Distributions made in the form of dividends or stock repurchases impact the firm’s value and the investors in different ways. Some analysts have argued that a firm’s value should solely be determined by its basic earning power and the business risk of the firm. Which of these concepts would support these analysts’ argument? A. The signaling hypothesis B. Dividend irrelevance theory C....