Which of the Following Are Valid Reasons for a fiRm

question 42

Multiple Choice

Which of the following are valid reasons for a firm to reduce or eliminate its cash dividends? I. The firm is on the verge of violating a bond restriction which requires a current ratio of 1.8 or
Higher.
II) A firm has just received a patent on a new product for which there is strong market demand and
It needs the funds to bring the product to the marketplace.
III) The firm can raise new capital easily at a very low cost.
IV) The tax laws have recently changed such that dividends are taxed at an investor's marginal rate
While capital gains are tax exempt.

• A)I and III only.
• B)II and IV only.
• C)II, III, and IV only.
• D)I, II, and IV only.
• E)I, II, III, and IV.

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Definitions:

Morning Bias

Morning Bias refers to the potential for decision-making or judgment to be influenced by the time of day, especially a tendency to have different cognitive processing in the morning.

Subjective Performance Measures

Evaluation metrics based on personal judgments or opinions rather than quantifiable data, often used in performance reviews.

Frame-of-Reference Training

Training designed to standardize the evaluation criteria and rating scales used by evaluators, typically in the context of performance appraisal.

Structured Interviews

An interview method where all candidates are asked the same predetermined questions in the same order to ensure fairness and consistency.