Earmark, Co

question 69

Multiple Choice

Earmark, Co. has a policy of returning a minimum of 40 percent of earnings to shareholders every year through dividend issues and open-market stock repurchases. In each quarter this year, the company earned $0.35 per share. In each of the first three quarters the company paid a regular cash dividend of $0.10 per share. What combination of dividends could the company's board approve to meet their target payout percentage?

• A) A regular cash dividend of $0.10 per share.
• B) A regular cash dividend of $0.10 per share and an extra dividend of 0.56 per share.
• C) A regular cash dividend of $0.10 per share and an extra dividend of $0.46 per share.
• D) A regular cash dividend of $0.10 per share and an extra dividend of $0.16 per share.

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Definitions:

MAO Inhibitors

A class of drugs that inhibit the action of monoamine oxidase, used in treating certain psychiatric conditions.

Antidepressants

Medications prescribed to relieve symptoms of depression by balancing chemicals in the brain that affect mood and emotions.

Tardive Dyskinesia

A neurological disorder characterized by involuntary, repetitive movements of the face and body, often as a side effect of long-term use of certain psychiatric drugs.

Traditional Antipsychotic Drugs

Medications primarily used to manage psychosis, especially in schizophrenia and bipolar disorder, characterized by their dopamine antagonist properties.