If the Firm Has Earnings Available to Common Shareholders,it Has

question 43

Multiple Choice

If the firm has earnings available to common shareholders,it has two choices of what to do with these earnings: it can either ________ or ________.

• A)pay dividends to the common shareholders; retain the earnings to finance future projects and investments.
• B)pay dividends to the preferred shareholders; repurchase common stock.
• C)pay dividends to the bondholders; retain the earnings to finance future projects and investments.
• D)pay dividends to the common shareholders; pay dividends to the bondholders.

---

Definitions:

Aboriginal Peoples

Indigenous groups native to a specific area; in many contexts, this term is used in Canada to refer to First Nations, Inuit, and Métis peoples.

Québécois

Refers to a French-speaking inhabitant of Quebec, a province in Canada, or pertaining to the francophone culture of Quebec.

Head Tax

A tax imposed on each person or per head, historically used as an immigration control measure.

Early Twentieth Century

Refers to the period from the year 1901 to 2000, marking the first half of the 20th century and characterized by rapid industrialization and major world events.