Elkins Feed Lot Is an All-Equity Firm with Positive Net

question 30

Multiple Choice

Elkins Feed Lot is an all-equity firm with positive net income.Which one of the following will result if the firm pays a cash dividend?

• A)Number of shares outstanding will increase
• B)Earnings per share will decrease
• C)Total assets will remain constant
• D)Price-earnings ratio will decrease
• E)Total equity will increase

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Definitions:

Incumbency Advantage

The electoral edge gained by those already in office, often due to name recognition, relationships, and access to resources.

Sophomore Surge

The phenomenon where political candidates see a significant increase in support or performance in their second campaign or term.

Redistricting

The process of drawing electoral district boundaries, typically done to ensure equal representation as populations change.

Polarized

A state of division between opposing attitudes or principles, especially in politics and public opinion.