When a stock repurchase occurs, which of the following is not correct? a. EPS decreases b. Shares are repurchased then cancelled c. Investors may regard this as a tax break compared to a dividend payment d. Costs in servicing small shareholders may be reduced e. All of the above are correct

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A: EPS are determined by dividing gains to equity owners by the aggregate number of equity shares…

Q: Which of the following statements is true? a. High liquidity means a company is short on cash and…

A: Debtholders are just like the creditors of the company and they will have prior claim on the assets…

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A: Share repurchase means buying back of the shares by the company. It is also referred to as treasury…

Q: Which of the following statements is not true?

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A: a.The Corporate Valuation Model can be used for companies with uneven cashflow growth rates and the…

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A: The dividend is declared to the shareholders from the retained earnings of the business. The…

Q: What is the difference between dividends that are declared and dividends that are paid

A: There exist difference between dividend that is declared and paid

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A: The correct answer to this question is:b) ASRs send a stronger signal to markets when disclosed…

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A: Share Buyback is  a share repurchase wherein a company buys back its own shares from the marketplace…

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A: A stock dividend is a payment to shareholders that consists of additional shares rather than cash.…

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A: Cost Method of Accounting for Investments: When it comes to recognizing particular investments in a…

Q: Which of the following statements is false?   A.   Mutual funds are pool investor funds to…

A: Working capital is the capital which is required to operate day to day working of a business. It…

Q: True or False: The following statement accurately describes how firms make decisions related to…

A: A paragraph is given describing how firm decides to issue new equity. An issuance of equity is…

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A: According to client effect theory, businesses should adjust their dividend policies to appeal to a…

Q: Appropriating retained earnings will Multiple Choice cause an increase in stockholders' equity.…

A: Appropriating retained earnings will have no effect on total stockholders' equity. Appropriating…

Stock Yields

The stock yield is otherwise known as the dividend yield. The dividend yield is an annual payment of the stock dividends to the holder of a firm’s stock. The dividend yield is a financial ratio to measure the value of dividend payout every year for the relative stock price. The yield of a stock is usually shown in a percentage that discloses the expected future earnings from stock depending on the current stock price in the future. Stock yield will change depending on the market fluctuations and in accordance with the market fluctuations, the dividends will be increased or decreased by the firm.