____ determines the ultimate distribution of the firm’s earnings between reinvestment and cash dividend payment to shareholders. a. Financial expertise b. Board of Directors’ agreements c. Dividend policy d. Management efficiency

____ determines the ultimate distribution of the firm’s earnings between reinvestment and cash dividend payment to shareholders. a. Financial expertise b. Board of Directors’ agreements c. Dividend policy d. Management efficiency

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter12: Fainancial Statement Analysis

Section: Chapter Questions

Problem 36MCQ

See similar textbooks

Related questions

Q: QUESTION 2 Dividend policy can affect the value of the firm for which of the following reasons? a.…

A: Dividend policy can affect the value of the firm for following reasons

Q: increasing the leverage of a firm to pay generous dividends to stockholders or to pay and high…

A: The business risks, the leverage , trade-off theory, financial risk and distress, debt-equity ratio,…

Q: How is the wealth of a firm’s shareholders/owners measured by? Group of answer choices a)…

A: The objective of financial management is to maximize the wealth of shareholders, that is maximize…

Q: Which item would reduce the cash balances of a business and NOT reduce the profit for the year?…

A: Introduction: Income statement: All revenues and expenses are shown in Income statement. It tells…

Q: Direction: Answer comprehensively the following questions. 1. Explain the shareholder wealth…

A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question…

Q: 1. Which of the following can be accepted as main points to note when it comes to a company's…

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Which of the following is the primary goal of a firm? Select one: O a. maximize stockholder wealth O…

A: Every firm and its management must have a primary goal which it must focus on achieving. The primary…

Q: The total market value of the firm's equity is determined by Select one: O a. the firm's accountants…

A: Total market value of a stock is calculated as the price of the stock trading and the number of…

Q: determines how much the stock is worth. 2. _________________ is the study of applying specific value…

A: As per the guidelines, only three parts are allowed to be solved. Please upload different question.…

Q: The par value of the common stock is an arbitrarily assigned per share value used primarily for…

A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question…

Q: 1. Dividend is a financing decision as well as distribution of earnings. Do you agree with the…

A: Note: “Since you have asked multiple question, we will solve the first question for you. If you want…

Q: following, except a. relationship between the various long-term sources of financing b. proper mix…

A: Capital Structure defines what and in which proportion debt and equity are employed in a company.

Q: ____________ is a short-term goal. It can be achieved at the expense of the firm and its…

A: Short term goals of the business means those objectives or goals which needs to be completed or…

Q: One of the most commonly accepted objective of a firm is to maximize the value of the firm and the…

A: Factors Affecting Dividend Policy of the company: 1. Stability of Earnings - Stability of earnings…

Q: Dividend policy determines the ratio between the earnings distributed to shareholders and the…

A: Dividend policy is referred as the dividend distribution, which has the guidelines that actually…

Q: In the theoretical world of Miller and Modigliani, ____. a. a firm should pay out 100% of…

A: According to Miller and Modigliani, in a perfect capital market there is no transaction cost and…

Q: According to IAS 39 Financial Instruments: Recognition and Measurement, at what amount should a…

A: IAS 39 is an Indian accounting standard which is related with the recognition and measurement of the…

Q: which one is correct answer please confirm? QUESTION 28 The business risk of a firm refers to the…

A: Risk means possible outcome from unexpected events. Definition or risk element is differ from person…

Q: If the financial markets are competitive and complete, which ones of the following goals of a firm…

A: Goal of a firm is always to maximize shareholder's' wealth

Q: SECTION A 1. Which of the following terms is defined as the mixture of a firm's debt and equity…

A: Since you have asked a specified question (question 2), we will solve it for you.

Q: Which of the following user groups would be interested in the company's dividend policy and…

A: Dividends are distribution of profits or retained earnings by a corporate entity to its…

Q: Which of the following statement is NOT a function of the stock market in a market economy? A. to…

A: Introduction : In simple words, stock market refers to the sum of buyers and sellers of stocks of…

Q: Which one of the following is the ultimate objective of modern financial management for a…

A: objective of financial manager is to maximise shareholders value.

Q: 1. Dividend policy and free cash flow Company management, especially in established corporations,…

A: Dividend refers to portion of total earnings that an entity shares with their stockholders.

Q: Do manager of a firm care more about their EPS than retained earnings? Explain why, just start…

A: Earnings per share is the share of a company’s profit distributed among all shareholders. Retained…

Q: The decision to pay a cash dividend is within the jurisdiction of A. the board of directors…

A: Dividend: Dividend is the return on stock investment earned by the shareholders of a firm. Cash…

Q: Question The decision to pay a cash dividend is within the jurisdiction of . A. the board of…

A: The portion of the company's earnings that are distributed directly in the form of money to the…

Q: whether an investing firm is the primary beneficiary in a variable-interest entity. When is an…

A: Since you have posted multiple questions, we will answer the first one for you. If you want a…

Q: Which of the following statements is/are CORRECT? O 1) Capital budgeting evaluates timing and risk…

A: 1. false as the capital budgeting evaluates risk and timing of future cashflow considering the size…

Q: 1. Dividend policy and free cash flow Aa Aa Companies, especially established corporations, set up a…

A: Free cash flows to the firm represent the cash available to the capital providers i.e. amount…

Q: What is the most appropriate goal for a publicly-traded company? O Maximize stock price O Maximize…

A: A publicly traded firm is one which has issued shares in the market and is listed on a stock…

Q: 8. Each of the following is sometimes listed as a reasonable objective for a firm: (a) maximize…

A: Investment decisions are the decisions taken by the investors and top management to use the funds or…

Q: 1. Answer the following questions for the Mason brothers. a) How are paid-in-capital and retained…

A: Stockholders’ equity is the measure of assets staying in a business after the sum total of the…

Q: ______________ is the ultimate objective of a finance manager in a business organization. a. Profit…

A: Because of more engagement in the business operations, the financial manager is more efficient in…

Q: O c.Dividend Decision

A: In simple words, whenever a company makes any profit, it has two choices either to distribute them…

Q: Dividend policy can affect the value of the firm for which of the following reasons? a. Personal…

A: 1. Dividend policy can affect the value of the firm for which of the following reasons d. all of…

Q: 1. The primary goal for a firm's financial managers is to: A. Maximize the firm's reported net…

Q: Which one of the following statements is correct? A Modigliani and Miller argued that dividend…

A: Repurchase of shares are alternative procedure to issue dividend by distribution of wealth in the…

Q: When a firm is short of cash yet it wishes to distribute something to shareholders, it should…

A: The following are some of the types of Dividends Cash Dividend Stock Dividend Liquidating Dividend…

Q: Which of the following is NOT a way of stating the overriding goal of financial management? Select…

A: Shareholder wealth maximization is the goal to maximize the share price and thus increase the wealth…

Q: ing are some of the factors that influence the market price of a corporation: I. Industry…

A: Step 1 These internal and external factors can be used by investors to anticipate stock prices.…

Q: Which of the following is the main goal of corporate financial managers? O A. Maximizing sales. O B.…

A: Step 1 Financial management is crucial to a company's long-term financial performance. As a result,…

Question

which one is correct answer?

Q30: ____ determines the ultimate distribution of the firm’s earnings between reinvestment and cash dividend payment to shareholders.

	a.	Financial expertise
	b.	Board of Directors’ agreements
	c.	Dividend policy
	d.	Management efficiency

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.

Similar questions

Which of the following is true about earnings management? A. It works within the constraints of GAAP. B. It works outside the constraints of GAAP. C. It tries to improve stakeholders views of the companys financial position. D. Both B and C E. Both A and C
The cost of equity is _______. A. the interest associated with debt B. the rate of return required by investors to incentivize them to invest in a company C. the weighted average cost of capital D. equal to the amount of asset turnover
If the financial markets are competitive and complete, which ones of the following goals of a firm are equivalent? I. Earnings maximization II. Earnings per share maximization III. Share value maximization IV. Maximizing the utility of existing shareholders I and II Il and III II, III and IV III and IV
Financial managers are responsible for decisions that maximize share price and shareholder9s wealth. Identify which of the following is/are component/s of shareholder9s wealth? A. Return B. Capital growth C. Cash distributions D. All of the above are correct
Which of the following statements is TRUE? a. The primary goal of financial management is to maximize the firm's profit and creditors' wealth Ob. The capital budgeting decision deals with how the firm obtains financing to support short-term investments. c. The observed market price of a company's stock is the stock's "true" value based on accurate risk and return data. Od. Shareholders elect the board of directors, who in turn create a management team to run the company and achieve corporate goals. e. Security analysis and portfolio theory are in the area of corporate finance.
TOPIC: Introduction to Financial Management 1. Which of the following can be accepted as main points to note when it comes to a company's financial objective? O It is generally accepted that the main financial objective of a company should be to maximize (or at least increase) shareholder wealth. O There are practical difficulties in selecting a suitable measurement for growth in shareholder wealth. Financial targets such as profit maximization and growth in EPS might be used, but no financial target on its own is ideal. O Financial performance is therefore assessed in a variety of ways: by the actual or expected increase in the share price, growth in profits, growth in EPS, and so on. 2. Which of the following statement/s depicts agency relationships and conflicts? I. The owners expect the agents to act in the best interests of the owners. Ideally, the 'contract' between the owners and the managers should ensure that the managers always act in the best interests of the…
QUESTION 1 INDICATE THE CORRECT ANSWER BY CHOOSING ONE OF THE FOUR OPTIONS A,B,C OR D. 1.1. The primary goal of the financial manager is _____A. minimising risk.B. maximising profit.C. maximising wealth.D. minimising return. 1.2. Shareholders receive realisable returns through _____A. earnings per share and cash dividends.B. increase in share price and cash dividends.C. increase in share price and earnings per share.D. profit and earnings per share. 1.3. The wealth of the owners of a company is represented by _____A. profits.B. earnings per share.C. share value.D. cash flow. 1.4. Wealth maximisation as the stated goal of a company implies enhancing the wealth of the _____A. board of directors.B. company’s employees.C. national government.D. company’s shareholders. 1.5. The goal of profit maximisation would result in prioritising _____A. cash flows available to shareholders.B. risk of the investment. C. earnings per share.D. timing of the returns. 1.6. Profit maximisation as a goal is…
which one is correct please confirm? QUESTION 10 Dividend policy can affect the value of the firm for which of the following reasons? a. Personal taxes b. Flotation costs c. Shareholder transaction costs d. All of these are correct
Multiple Choice Questions 1. The following are the factors to be considered in Suitability, except A. Environment B. Capabilities C. Expectations D. Scenarios 2. The ____________ for a firm is the internal rate of return on existing investments, based on real cash flows. A. cash flow return on investment (CFROI) B. Economic Value Added (EVA) C. Total Shareholders Return D. Return on Investment 3. The elements that must be considered in using EVA are as follows, except ___________. A. Reasonableness of earnings B. Appropriate cost of Capital C. Volatility of the market D. None of the above
Which of the following is the main goal of corporate financial managers? O A. Maximizing sales. B. Maximizing profits. C. Maximizing market share. D. Maximizing the price per share of the common stock.
When financal statements are used by shareholders and irwestors to evaluate the performance of a company's top execuoves it is referred to as the function of financial reports. Minde Choice proxy tectrical. Semedsho frimineteal
The dividend policy of a company is a key focus for potential investors. This is because dividends are the main contribution to the assumed investment objective. Hence, it is important that management monitor and review the various factors that influence the company's dividend policy. Critically analyse this statement.