Trenton Publishing Follows a Strict Residual Dividend Policy

question 6

Multiple Choice

Trenton Publishing follows a strict residual dividend policy. All else equal, which of the following factors would be most likely to lead to an increase in the firm's dividend per share?

• A) The firm's net income increases.
• B) The company increases the percentage of equity in its target capital structure.
• C) The number of profitable potential projects increases.
• D) Congress lowers the tax rate on capital gains. The remainder of the tax code is not changed.
• E) Earnings are unchanged, but the firm issues new shares of common stock.

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Definitions:

Hematuria

Abnormal presence of blood in the urine.

Costovertebral Angle

The angle formed by the vertebral column and the downward slope of the last rib, an area often examined for tenderness accompanying kidney problems.

Cranial Nerve IX

Also known as the Glossopharyngeal nerve, it is responsible for taste and other functions of the throat (pharynx) and mouth.

Tongue Blade

A small medical tool used to depress the tongue to allow examination of the mouth and throat.