When a Firm Pays Out a Dividend, the Share Price

question 78

Multiple Choice

When a firm pays out a dividend, the share price ________, and when it conducts a share repurchase at the market price, the share price ________.

• A) increases, increases
• B) is unchanged, decreases
• C) decreases, decreases
• D) decreases, is unchanged

Grasp the ethical considerations involved in psychological research, including informed consent, the use of deception, and the treatment of participants.

Understand the significance and limitations of using animals in psychological research.

Comprehend the roles and limitations of brain imaging techniques in psychological research.

Appreciate the importance of ethical standards in conducting and evaluating psychological research.

---

Definitions:

Net Income

A company's overall earnings remaining after deducting all expenses, taxes, and costs from its total revenue.

Cash Dividends

A distribution of a portion of a company's earnings, decided by the board of directors, paid to a class of its shareholders.

Financing Activities

Activities that result in changes in the size and composition of the equity and borrowings of a company, reported in the cash flow statement.

Net Income

The net profit of a company following the deduction of all expenses and tax amounts from its total income.