Question

Aneeka owns 40 shares of stock in Company A that are valued at $15/share.

After Company A repurchases 5% of its outstanding shares on the open market, what does Aneeka own?

• 38 shares of stock valued at a lower price/share

• 40 shares valued at a higher price/share

• 40 shares valued at a lower price/share

• 38 shares of stock valued at a higher price/share

Which of the following investors would likely prefer a cash dividend over a stock dividend?

• Kylie is a high-income earner and prefers to avoid additional taxes this year.

• Harriett is more focused on long-term outcomes than short-term ones when it comes to investing.

• Layton prefers when companies let him decide how to benefit from his dividends.

• Enrique subscribes to the "bird in the hand" theory when it comes to dividends.

Which inventory technique assumes that the most recently purchased inventory is sold first?

• ABC

• Average cost

• LIFO

• FIFO

Determine whether the following description is true of a capital lease, an operating lease, neither or both.

"A commercial financing agreement wherein a company may purchase the leased asset at a discount when the lease ends"

• Capital lease

• Operating lease

• Both

• Neither

Answer 1