High Dividends May Be Used as __________ of a Firm's

question 57

Multiple Choice

High dividends may be used as __________ of a firm's __________.

• A)An indicator; high capital gains
• B)An indicator; tax liability
• C)A signal; return on equity
• D)A signal; good prospects

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Definitions:

Total Revenue

is the total amount of money received by a company from its sales of goods or services, before any expenses are subtracted.

Price Elasticity

A measure of how much the quantity demanded of a good responds to a change in its price, with high elasticity indicating sensitivity.

Appropriations

Funds that are set aside by a governing body, like a legislature, for a specific use or purpose as part of a budget or spending bill.

Tuition

The fee for instruction, especially for higher education institutions.