Module 6 FNAN 522
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A company made $10 million in revenue, recorded $2 million in net income, and paid $750,000 in dividends last year. What was the company's pay out ratio last year? Select one: a. 20.0% b. 2.7% c. ... 37.5% d. 7.5% Question 2 Correct Marked out of 1.00 Flag question Question text This study source was downloaded by 100000842568006 from CourseHero.com on 07-17-2022 14:01:19 GMT -05:00 https://www.coursehero.com/file/38458372/Module-6-FNAN-522docx/ . In which of the following situations would a shareholder prefer to receive stock dividends as opposed to cash dividends? Select one: a. The investor is looking to own shares in the company for a long period of time. b. The investor wants to minimize the taxes due on investment income. c. All of these answers d. Cash dividends and stock sales are both taxed using capital gain rates. Question 3 Correct Marked out of 1.00 Flag question Question text The Modigliani-Miller theory suggests that it doesn't matter to a shareholder whether a company issues dividends. Why might that theory not be applicable to the US stock market as it currently exists? Select one: a. Dividends and share repurchases are taxed at different rates. b. Changes in dividend policy may indicate a change in the company's investment policy. c. All of these answers. d. There are transaction costs associated with trading stock. Question 4 Correct Marked out of 1.00 [Show More]
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