From an Investor's Point of View,a Liquidating Dividend from an Investee

question 12

Multiple Choice

From an investor's point of view,a liquidating dividend from an investee is:

• A) A dividend declared by the investee in excess of its earnings in the current year.
• B) A dividend declared by the investee in excess of its earnings since acquisition by the investor.
• C) Any dividend declared by the investee since acquisition.
• D) A dividend declared by the investee in excess of the investee's retained earnings.

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Definitions:

Utility Function

A representation of how a consumer ranks different bundles of goods according to their level of satisfaction or utility.

Income

Financial returns, especially continual, from work or investing activities.

Price of X

The amount of money required to purchase a product or service named X.

Consumption of Y

Represents the amount or volume of good Y that is utilized or consumed over a period.