Which One of the Following Statements Is Correct About a Firm

question 92

Multiple Choice

Which one of the following statements is correct about a firm that adheres to a strict residual dividend policy? Assume that the amount of earnings each year exceeds the amount of capital spending.

• A) The dividend yield on the stock will be constant over time.
• B) The dividend payout ratio will be constant.
• C) The debt-equity ratio will increase each year by a percentage equal to [1/(1 + D/E)].
• D) The balance in the common stock account will increase each year by the amount of the capital spending multiplied by [1/(1 + D/E)].
• E) The retained earnings will increase each year by the amount of the capital spending multiplied by [1/(1 + D/E)].

Apply knowledge of motivation and rhetoric in leadership and organizational contexts.

Analyze the relationship between motivation and workplace performance, including the role of needs satisfaction.

Familiarize with emotional intelligence dimensions and their importance in personal and professional settings.

Understand the historical figures' use of communication tools in leadership.

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Definitions:

Minimum Necessary

A principle in healthcare and privacy laws requiring the least amount of personal information to be used or disclosed for a specific purpose.

Keyboard

A device with buttons or keys for entering data into a computer or other electronic devices.

Hardware

The physical components of a computer system, such as the hard drive, CPU, monitor, and peripherals.