Q1 Which one of the followings is least important for dividend decisions   A. Attract institutional investors   B. Stability of future earnings   C. Flotation cost of issuing new equity   D. Maintaining consistency with historic dividend policy   F. A sustainable change in earnings

Fundamentals Of Financial Management, Concise Edition (mindtap Course List)
10th Edition
ISBN:9781337902571
Author:Eugene F. Brigham, Joel F. Houston
Publisher:Eugene F. Brigham, Joel F. Houston
Chapter4: Analysis Of Financial Statements
Section: Chapter Questions
Problem 17P: CONCEPTUAL: RETURN ON EQUITY Which of the following statements is most correct? (Hint: Work Problem...
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Q1

Which one of the followings is least important for dividend decisions

  A.

Attract institutional investors

  B.

Stability of future earnings

  C.

Flotation cost of issuing new equity

  D.

Maintaining consistency with historic dividend policy

  F.

A sustainable change in earnings

Q2

With a right offerings, each shareholder is issued an obligation to buy a specified number of new shares from the firm at a specified price within a specified time, after which the rights expire.

True

False

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