Sophia Has Just Learned That She Is Pregnant

question 61

Multiple Choice

Sophia has just learned that she is pregnant. Her doctor advises a change in her diet to avoid any potential neural tube defects. Which of the following does her doctor recommend?

• A) consuming food rich in vitamin C
• B) consuming adequate amounts of the B vitamin folic acid
• C) consuming additional calcium supplements
• D) consuming additional iron supplements

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Definitions:

Residual Dividend Policy

A strategy where dividends are based on earnings minus funds the firm retains to finance the equity portion of its investment and working capital requirements.

Special Dividend

A one-time distribution of earnings to shareholders, oftentimes an indication of excess cash the company wants to return.

Homemade Dividend

A concept where investors create their own dividend policy by selling a portion of their portfolio of equities instead of relying on company-issued dividends.

Liquidating Dividend

A type of dividend paid by a company that is returning a portion of the capital to its shareholders, typically during dissolution.