Types of Dividends: Cronulla Brewing Co

question 3

Multiple Choice

Types of dividends: Cronulla Brewing Co. will be distributing $40 million to shareholders through a special dividend. The company has 160 million shares outstanding. If you own 100 shares of Cronulla Brewing Co., how much will you receive? Ignore tax.

• A) $400
• B) $100
• C) $25
• D) $250

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Definitions:

Multiplier Effect

The economic concept that an initial increase in spending leads to a greater increase in national income and total economic output.

Investment Accelerator

A concept where an increase in national income or gross domestic product leads to a proportionate increase in investment spending.

Aggregate-Demand Curve

A graph showing the relationship between the total quantity of goods and services demanded across all sectors of the economy and the price level.

Monetary Policy

Actions by a central bank or other regulatory authority to influence a nation's money supply and interest rates to achieve macroeconomic objectives such as controlling inflation, consumption, growth, and liquidity.