Which Three of the Following Make Up a Suggested Action

question 27

Multiple Choice

Which three of the following make up a suggested action plan for a dividend policy?

• A) Forecast the 'surplus' cash flow resulting from the subtraction of the cash needed for investment projects from that generated by the firm's operations over the medium to long term.
• B) Plan levels of dividend payment for the foreseeable future and amend borrowing levels to ensure that dividend levels gradually rise.
• C) If cash flows are greater than projected for a particular year, keep the maintainable regular dividend fairly constant, but pay a special dividend or initiate a share repurchase programme.
• D) Pay a maintainable regular dividend based on this forecast. This may be biased on the conservative side to allow for uncertainty about future cash flows.

Understand the trade-offs involved in balancing the need for capital with the preservation of equity for startup companies.

Recognize the various forms of venture capital and how they are organized and function.

Know the appropriate stages and circumstances under which a company should seek specific types of investors.

Understand the regulatory and strategic considerations in making a public offering versus private placements.

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Definitions:

Specialized Areas

Specific segments or fields that focus on a particular aspect of knowledge or activity, requiring advanced skills or knowledge.

Savant Performance

Exceptional abilities in a specific area, such as arithmetic or memory, often noted in individuals with autism or other developmental disorders.

Criterion-Related Validity

The extent to which a test's scores actually predict or correlate with a specific criterion of interest.

Predictive Reliability

The degree to which a measure or test consistently and accurately predicts future outcomes or behaviors.