According to a 2004 Survey of Financial Executives, the Largest

question 40

Multiple Choice

According to a 2004 survey of financial executives, the largest percentage of firms that pay a dividend tend to set a target

• A)share-repurchase-price ratio.
• B)dividend per share ratio, with targeted changes.
• C)dividend-earnings payout ratio.
• D)dividend-price ratio.

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Definitions:

Present Value

The worth at present of a future money amount or cash flow sequences, evaluated using a certain rate of return.

Future Value

The future value of an asset or cash that, on a specific future date, is equal in worth to a given amount today.

Cash Flow

The total financial movement entering and exiting a business, substantially affecting its operational liquidity.

Present Value

The current value of a future amount of money or a series of future payments, discounted at a specific rate.