Consider a Company That Had Unexpectedly Higher Earnings Last Quarter

question 46

Multiple Choice

Consider a company that had unexpectedly higher earnings last quarter and intends to pay out some additional value to shareholders. Which type of dividend is the company likely to use?

• A) Regular cash dividend
• B) Extra dividend
• C) Special dividend
• D) Liquidating dividend

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Definitions:

Quick Ratio

A liquidity measure that indicates a company's ability to cover its short-term liabilities with its most liquid assets.

Percentage Increase

The proportional growth of a quantity over a specific period, calculated as the difference between the final and initial values divided by the initial value, multiplied by 100.

Sales Data

Information and statistics related to the sales performance of a company's products or services.

Working Capital

The difference between a company's current assets and current liabilities, indicating the short-term financial health and operational efficiency.