In 2006,Luther Incorporated Paid a Special Dividend of $5 Per

question 88

Multiple Choice

In 2006,Luther Incorporated paid a special dividend of $5 per share for the 100 million shares outstanding.If Luther has instead retained that cash permanently and invested it into treasury bills earning 5%,then the present value of the additional taxes paid by Luther would be closest to:

• A)$35 million
• B)$290 million
• C)$175 million
• D)$585 million

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Definitions:

Fixed-interval

In behavioral psychology, this is a reinforcement schedule that delivers a reward for the first response following a predetermined time interval.

Variable-ratio

A reinforcement schedule in which a response is reinforced after an unpredictable number of responses, which tends to produce high rates of response.

Fixed-ratio

A reinforcement schedule in which a response is rewarded after a predetermined number of responses.

Variable-interval

A reinforcement timetable in which a response is reinforced following a random duration of time.