Question Details

Stable dividend policy




1.	Stable dividend policy would most commonly imply:
a.	a high price/earnings ratio
b.	a stable dividend yield
c.	stable dividends per share
d.	stable earnings per share
e.	increasing dividends per share


	2.	Book value per share may not approximate market value per share because:
a.	the book value is after tax
b.	book values are based on replacement costs rather than market values
c.	book value is related to book figures and market value is related to the future potential as seen by investors
d.	investors do not understand book value
e.	book value is not related to dividends

 
	3.	Which of the following ratios represents dividends per common share in relation to market price per common share?
a.	dividend payout
b.	dividend yield
c.	price/earnings
d.	book value per share
e.	percentage of earnings retained


	4.	Which of the following ratios usually reflects investors opinions of the future prospects for the firm?
a.	dividend yield
b.	book value per share
c.	price/earnings ratio
d.	earnings per share
e.	dividend payout


	5.	Smith reported the following for 2010.

Beginning market price	$20.00
Average market price	24.00
Ending market price	26.00
Earnings per share:	
Basic	 1.80
Diluted	 1.60
Cash dividends per share	 1.00

The price earnings ratio and dividend payout were:
a.	16.25 and 62.50%
b.	16.25 and 65.00%
c.	17.00 and 62.50%
d.	15.00 and 62.50%
e.	15.00 and 60.00%



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