Calciya, Co

question 13

Multiple Choice

Calciya, Co. has a policy of returning at least 40 percent of earnings to shareholders every year through dividend issues and open-market stock repurchases. In each quarter this year, the company earned $0.20 per share. In each of the first three quarters, the company paid a regular cash dividend of $0.05 per share. The company has 8 million shares of common stock outstanding. What combination of dividends and stock repurchases could the company's board approve to meet their target payout percentage?

• A) A regular cash dividend of $0.05
• B) A regular cash dividend of $0.05 per share and an open-market stock repurchase of $960,000 in stock
• C) A regular cash dividend of $0.05 per share and an extra dividend of $0.12
• D) Both A regular cash dividend of $0.05 per share and an open-market stock repurchase of $960,000 in stock and A regular cash dividend of $0.05 per share and an extra dividend of $0.12

---

Definitions:

Blastocyst

A stage of early embryonic development characterized by a hollow, fluid-filled structure of cells, occurring before implantation in the uterine wall.

Placenta

A structure that forms within the uterus during pregnancy, which supplies the fetus with oxygen and nutrients, while also eliminating waste materials from the fetus's bloodstream.

Endoderm

The endoderm is one of the three primary germ layers in the very early embryo, which gives rise to the gastrointestinal tract, the liver, and the pancreas among other internal organs.

Pre-eclampsia

In pregnancy, a complication arises with high blood pressure and manifestations of damage to other organ systems, with the liver and kidneys being commonly affected.