All Else the Same, Which of the Following Is NOT

question 173

Multiple Choice

All else the same, which of the following is NOT a possible consequence of the firm making a regular cash dividend payment?

• A) Cash is decreased.
• B) Retained earnings are decreased.
• C) Shareholders of record receive a dividend payment.
• D) The stock price declines by the amount of the dividend on the ex-dividend date.
• E) The common stock account decreases.

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Definitions:

Returns

The money made or lost on an investment, usually expressed as a percentage of the investment's initial cost.

Period

A specific span of time during which certain financial or economic activities are measured or observed.

Time Weighted

Time-weighted is an investment return calculation method that eliminates the effects of cash flows in and out of the portfolio, focusing on the investment manager's performance over time.

Comparative Performance

The process of comparing the performance metrics of different securities, investments, or portfolios to benchmark or industry standards.