GoodSignal Co

question 68

Multiple Choice

GoodSignal Co. is currently trading for $10 with 1 million shares outstanding. Which of the following actions would be the most credible signal that management believes that the long-term prospects for a company have improved?

• A) Pay a $0.20 extra dividend in addition to the company's $0.20 regular quarterly dividend
• B) Increase the company's regular quarterly dividend from $0.20 to $0.40
• C) Initiate an open-market stock repurchase of 2 percent of the company's stock
• D) Pay a $0.20 special dividend by selling a major fixed asset

Understand the concepts of cost, price, and demand in economic models.

Identify factors contributing to undercoverage in statistical analyses.

Analyze market equilibrium and the effects of price changes on supply and demand balance.

Calculate markup percentage in retail pricing.

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Definitions:

Slope

The measure of the steepness or incline of a line or surface, often expressed as a ratio of rise to run or as an angle in degrees.

Price

The cost in currency anticipated, called for, or dispensed in payment for a thing.

Quantity Supplied

The amount of a good that producers are willing and able to sell at a given price over a certain period of time.

Company Profits

The financial gain that a company achieves after all expenses, taxes, and costs have been subtracted from total revenue.