A company that operates within a country whose legal system and laws relating to dividend policy are strict will tend to? a. Maintain or increase dividend pay-out ratio b. Increase plowback ratio c. Maintain an equal retention and pay-out ratio d. None of the foregoing choices A share split will cause changes in the total balance of which of the following balance sheet account? a. Cash b. Share capital c. Retained Earnings d. None of the choices

A company that operates within a country whose legal system and laws relating to dividend policy are strict will tend to? a. Maintain or increase dividend pay-out ratio b. Increase plowback ratio c. Maintain an equal retention and pay-out ratio d. None of the foregoing choices A share split will cause changes in the total balance of which of the following balance sheet account? a. Cash b. Share capital c. Retained Earnings d. None of the choices

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter14: Corporation Accounting

Section: Chapter Questions

Problem 14MC: Which of the following is true of a stock dividend? A. It is a liability. B. The decision to issue a...

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Which of the following theories is supported by the argument that shareholders can transform a company dividend policy into a different policy by means of investors buying and selling on their own account? a. dividend irrelevance theory b. "bird-in-the-hand" theory C. residual distribution model d. tax preference theory
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Identify the term being referred to: A theory that states that how high or low an entity pays out dividends does not affect the decisions of investors. *
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