Why would a company pay a liquidating dividend? O to purchase additional properties O to obtain additional capital from investors O to return the capital investment to the investors O to give investors income on a per share basis

ESPAÑOL INGLÉS FRANCÉS The distribution of a dividend that represents a partial return of the original investment made by the shareholders is known as to. participating dividend. b. liquidating dividend. C. property dividend. Enviar comenta Guardado Contribuir MacBook Ai

How and why should the cost of capital change when the Company must rely on new issues of common stock v retained earnings when obtaining capital from equity?

True (t) or False (f) _____ A reason some companies purchase investments is because they generate a significant portion of their earnings from investment income.

At the date of declaration, all are true about a property dividend except: O A property dividend results in a reduction to Additional Paid-In Capital. O A property dividend results in a reduction to Retained Earnings O A property dividend results in a reduction of Total Stockholders' Equity O A property dividend can generate a gain or loss based on the property's relative fair value and book value. Which of the following is true about direct costs companies incur to sell stock? O All of these answers are correct. O These costs include underwriting costs. O They are accounted for as a reduction to additional paid-in capital. O They do not meet the definition of an expense.

M-M theroy with perfect market suggests that divident payment: A.It dependes on the company's capital structure and retained earnings B.Has a positive impact on the value of a firm C.Has a negative impact on the value of a firm D.Has no impact on the value of a firm

An increase in the corporate tax rate for company X will generally     Increase X's cost of equity capital     Increase X's cost of debt capital     Increase X's weighted average cost of capital     Reduce X's  cost of debt capital