Assume an All-Equity Firm Has Positive Net Income

question 89

Multiple Choice

Assume an all-equity firm has positive net income.If this firm pays a cash dividend the:

• A)number of shares outstanding will increase.
• B)earnings per share will decrease.
• C)firm's total assets will remain constant.
• D)price-earnings ratio will decrease.
• E)firm's total equity will increase.

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Definitions:

Psychosexual Conflicts

A term from Freudian psychology referring to tensions and unresolved feelings that arise from different stages of sexual development.

Self-Actualization

The realization or fulfillment of one's talents and potentialities, considered as a drive or need present in everyone.

Surface/Source Traits

describe personality attributes observable in behavior (surface traits) and the underlying reasons for those behaviors (source traits).

Common/Unique Traits

Attributes or characteristics that can be widely shared among individuals or distinctively unique to an individual.