Which of the Following Is NOT a Method for a Firm

question 44

Multiple Choice

Which of the following is NOT a method for a firm to payout excess cash to its shareholders?

• A)pay a dividend with the excess cash
• B)repurchase shares
• C)issue new shares and pay a high dividend
• D)issue new shares

---

Definitions:

Cognitive Appraisal

Cognitive Appraisal involves the personal interpretation of a situation that ultimately influences the emotional response to that situation.

Lazarus Theory

The theory that a cognitive appraisal is the first step in an emotional response and all other aspects of an emotion, including physiological arousal, depend on it.

Emotional Response

A complex reaction pattern involving experiential, behavioral, and physiological elements, by which an individual attempts to deal with a personally significant matter or event.

Cognitive Aspect

Refers to the mental processes involved in gaining knowledge and comprehension, including thinking, knowing, remembering, and problem-solving.