Appropriating retained earnings will Multiple Choice cause an increase in stockholders' equity. cause a decrease in stockholders' equity. have no effect on total stockholders' equity. cause an increase in the dividends payable account.

Conflicts of interest between stockholders and bondholders are known as: O agency costs. O financial distress costs. O underwriting costs. Odealer costs. Otrustee costs. Click Save and Submit to save and submit. Click Save All Answers to save all answers. TCL Save

Investments in smaller company stock compared to investments in larger company stock are generally: A) more volatile because they are less liquid, have less stock issued and have less diversified sources of income. B) more volatile because they are less liquid, have less stock issued and have more diversified sources of income. C) less volatile because they are less liquid, have less stock issued and have less diversified sources of income. D) less volatile because they are less liquid, have less stock issued and have more diversified sources of income.

Retained earnings not paid out to shareholders in the form of dividends are: Select one: a. Re-invested in the company b. Confiscated by the government c. Sold on the secondary market d. Paid as executive bonuses

4. What forms of market efficiency are violated if investors overreact to good news, resulting in stock price increases followed by stock price decreases: a. Semi-strong form efficiency b. Strong-form efficiency c. Both 1 and 2 d. Neither 1 nor 2

stock splits are similar to stock dividends in that both reduce retained earnings and have no effect on par true false