Podcast
Questions and Answers
When should management consider returning some or all of the excess cash to shareholders as dividends?
When should management consider returning some or all of the excess cash to shareholders as dividends?
- When the company's revenue is declining
- When the company is planning to acquire a competitor
- When the company's stock price is high
- When there are no NPV positive opportunities and excess cash surplus is not needed (correct)
What influences the decision of whether to issue dividends or not?
What influences the decision of whether to issue dividends or not?
- The company's debt-to-equity ratio and current liabilities
- The company's market share and short-term earning power
- The company's research and development expenditure
- The company's unappropriated profit and long-term earning power (correct)
What action is management expected to take when cash surplus exists and is not needed by the firm?
What action is management expected to take when cash surplus exists and is not needed by the firm?
- Hold onto the surplus cash indefinitely
- Donate the surplus cash to charity
- Pay out some or all of those surplus earnings in the form of cash dividends or repurchase the company's stock (correct)
- Invest the surplus cash in high-risk ventures
What do shareholders of a 'growth stock' typically expect the company to do with its earnings?
What do shareholders of a 'growth stock' typically expect the company to do with its earnings?
In what scenario should management consider repurchasing the company's stock through a share buyback program?
In what scenario should management consider repurchasing the company's stock through a share buyback program?
Which of the following is an example of a visible inherited trait?
Which of the following is an example of a visible inherited trait?
What is the reason for tall and thin people tending to have tall and thin children?
What is the reason for tall and thin people tending to have tall and thin children?
How can a child who inherited the tendency of being tall still end up being short?
How can a child who inherited the tendency of being tall still end up being short?
Which statement best describes the study of genetics?
Which statement best describes the study of genetics?
What is an example of a trait influenced by both genes and the environment?
What is an example of a trait influenced by both genes and the environment?
