Neonia, Co

question 45

Multiple Choice

Neonia, Co. has a policy of returning a minimum of 25 percent of earnings to shareholders every year through dividend issues and open-market stock repurchases. In each quarter this year, the company earned $0.25 per share. In each of the first three quarters, the company paid a regular cash dividend of $0.05 per share. The company has 2 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 $100,000 in stock
• C) A regular cash dividend of $0.05 per share and an open-market stock repurchase of $400,000 in stock
• D) A regular cash dividend of $0.05 per share and an open-market stock repurchase of 500,000 in stock

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Definitions:

Histology

The study of the microscopic structure of tissues.

Tissues

Groups of cells that perform a similar function and are the building blocks of organs and structures in the body.

Cardiovascular System

The system comprising the heart and blood vessels, responsible for circulating blood throughout the body to supply oxygen and nutrients.

Organization Level

Refers to the hierarchy in biological systems, ranging from atoms to biosphere, delineating the complexity and interaction levels.