The Financial Manager Should ________

question 63

Multiple Choice

The financial manager should ________.

• A) try to maximize the after-tax payout to the shareholders, for a given payout amount
• B) try to minimize the firm's earnings per share
• C) never pay dividend as a payout policy
• D) only repurchase shares as a payout policy

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Definitions:

Tangibility

Tangibility refers to the quality of being perceptible by touch or being material, as opposed to intangible assets like patents or copyrights.

Inheritance

The assets, rights, and obligations passed down to heirs or legal successors after someone dies.

Mislaid Property

Refers to personal property that is unintentionally left by its owner in a place where it is likely to be found and cared for, such as leaving a book in a cafe.

Abandoned Property

Property that has been discarded by its owner, who has no intention of reclaiming it.