1 . Which of the following is most likely to increase
shareholders' wealth?
A. A stock dividend.
B. A stock split.
C. A special dividend.
2. Which of the following is most accurate? The purchaser of a
stock will not receive the dividend if the stock was purchased on
or after the:
A. declaration date.
B. ex-dividend date.
C. holder-of-record date.
3 . A share repurchase that begins with a company communicating
to shareholders
a specific number of shares and a range of acceptable prices is
most likely to be
a(n):
A. open market repurchase.
B. fixed price tender offer.
C. Dutch auction.
4. If a company's after-tax borrowing rate is greater than the
company's earning
yield when the company repurchases stock with borrowed money,
going
forward, the earnings per share is most likely to:
A. increase.
B. decrease.
C. remain unchanged.
5. After a share repurchase, book value per share is most likely
to increase if, pre-purchase, BVPS was:
A. greater than the market price per share.
B. less than the market price per share.
C. negative.
Please explain each one of the answers.
1 . Which of the following is most likely to increase shareholders' wealth? A. A stock dividend. B. A stock split. C. A
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