Which One of the Following Is an Example of a Liquidating

question 7

Multiple Choice

Which one of the following is an example of a liquidating dividend?

• A)Valley Feed Mills recently sold its grain storage facility and is distributing the proceeds of that sale to its shareholders.
• B)Kate's Winery has excess cash that it wishes to distribute to its shareholders in addition to its normal cash dividend.This extra distribution usually occurs about once every year.
• C)Kurt's Music is planning to increase its quarterly dividend by 3 percent.
• D)The Dried Florist is preparing to pay its first annual dividend of $.08 per share.
• E)Hi Tek had an extraordinarily profitable year and has decided to do a one-time only $10 per share cash dividend.

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Definitions:

Satisficing

A decision-making strategy that aims for a satisfactory or adequate result, rather than the optimal solution, due to constraints.

Systematic Evaluation

A structured process of assessing the performance, effectiveness, or quality of a system, program, or project using specific criteria and methodologies.

Escalation of Commitment

A behavioral pattern where individuals or groups continue to invest in a decision despite new evidence suggesting that the decision was wrong.

Perceived Costs

The assumed disadvantages, losses, or negative outcomes associated with a particular decision or behavior.