Palo Alto Enterprises Has $100,000 in Cash

question 56

Multiple Choice

Palo Alto Enterprises has $100,000 in cash.They wish to invest the money in Treasury bills at 6% and use the returns to pay dividends to shareholders after a year.Alternately they can pay a dividend and allow shareholders to make the investment.In perfect capital markets,which option will shareholders prefer?

• A)immediate cash dividend
• B)dividend after one year
• C)prefer half from each source
• D)indifferent between options

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A methodology for conducting business around the world, including expanding operations and marketing to different countries.

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