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What does it mean when preferred stock has a cumulative feature? A.A dividend must be paid to the preferred stockholders each year. B. A dividend cannot be paid to the common stockholders. C. If dividends were not paid to preferred stockholders in previous years, these dividends must be paid before any dividends are paid to the common stockholders. D. The stockholders have the right to share in extra dividends. Please explain why the option is correct and remaining incorrect in detail explain each and every option in detail with explanation

Which of the following statements are true of preferred stock? More than one answer may be correct. Multiple select question. It does not pay dividends. It pays a constant dividend. It has a fixed maturity. It pays dividends in perpetuity.

Which of the following statements is true about common stock dividends? Multiple choice question. They may grow at a constant rate. They always grow at a constant rate. They always grow at a differential rate. They never grow.

Which of the following statements is true about common stock dividends? Multiple choice question. They may grow at a constant rate. They always grow at a differential rate. They always grow at a constant rate. They never grow.

Which of the following is the reason that preferred dividends declared during the period are deducted from net income in calculating return on common stockholders’ equity?   a. Preferred dividends are not paid from net income. b. Preferred dividends are not a part of stockholders’ equity. c. Preferred dividends are not paid until all common stockholders have received their dividends, so preferred dividends are not relevant in the formula and so must be taken out of the equation. d. Preferred dividends will reduce the amount of income available for distribution to common stockholders.

Stock splits and stock dividends have the following effects on Total Stockholders' Equity: Select one: a. Stock Splits DECREASE | Stock Dividends DECREASE b. Stock Splits INCREASE | Stock Dividends NO CHANGE c. Stock Splits NO CHANGE | Stock Dividends DECREASE d. Stock Splits NO CHANGE | Stock Dividends NO CHANGE

To what extent does the company’s dividend policies support or hinder their strategies? For example, if the company is attempting to grow, are they retaining and reinvesting their earnings rather than distributing them to investors through dividends? Be sure to substantiate claims.

Which of the following is FALSE regarding common stock? ()The constant growth model assumes that dividends are expected to grow at a relatively constant rate forever. Common stockholders have the right to share proportionally in any dividends that are declared. Some companies have two classes of common stock, with super-voting shares held by the public investors. Common stockholders have the right to share proportionally in any remaining assets during liquidation. ONot all companies pay dividends to the common stockholders. Page 14 of 30 Previous Page Next Page

What happens to the price of a stock when the stock goes “ex-dividend”? a) it decreases b) it doesn’t change c) it increases d) there is no relationship between dividends and stock prices

When computing diluted earnings per share, which of the following will not be considered in the calculation? O Dividends paid on common stock. O The weighted average common shares. O The effect of stock splits. O The number of convertible bonds

"The dividend discount model is used to find the price of a stock based on the expected dividends received by the shareholder and the discount rate.  Therefore, all else constant, the price of a share of stock will increase if the discount rate decreases." A) True B) False

Why is this statement false. Small stock dividends are accounted for at the stock's par value.

Answer the multiple-choice question below: 1. Which of the following is/are incorrect about the characteristics of preferred stock: I.It has a fixed maturity date II.Dividends are tax-deductible III.Dividend payments vary just like common stock IV.Can be easily converted to a number of common stock Select one: a. I and II only b. I only c. I, II, and III only d. All of the above

A small stock dividend a. decreases common stock. b. has no effect on total equity. c. increases Retained Earnings. d. Items a, b, and c are correct.

Which of the following statements is NOT true?   A. Stock owners benefit from stock price increases   B. Higher stock prices allow companies access to more capital   C. Common stocks are not securities   D. Stock prices tend to be very volatile

Which of the following statement is false? A -Both stock splits and stock dividends increase the number of common shares issued B- Stock splits reallocate amounts between retained earnings and contributed capital accounts   C- Both stock spits and stock dividends increase the number of common shares outstanding   D- Both stock splits and stock dividends have the impact of reducing the market price of the stock

Stock Valuation.  Why does the value of a share of stock depend on dividends?  Based on the dividend growth model, what are the two components of the total return on a share of stock?  A substantial percentage of the companies listed on the NYSE and the NASDAQ don’t pay dividends, but investors are nonetheless willing to buy shares in them.  If the value of a share of stock depends on dividends, how is this possible?

please help me answer the following