Finance Assignment | Professional Writing
Design Layout Aceae ARDCORE Times New R. 2 AA AA EE S T Aabete Abcd BIU. *z * A2A Section A: 1 mark each 1) The total return on a share of stock refers to the dividend yield less any commissions paid when the stock is purchased and sold.
a. True b. False 2) Preferred stock is a hybrid–a sort of cross between a common stock and a bond–in the sense that it pays dividends that normally increase annually like a stock but its payments are contractually guaranteed like interest on a bond. a. True b. False 3) If a firm adopts a residual distribution policy, distributions are determined as a residual after funding the capital budget. Therefore, the better the firm’s investment opportunities, the lower its payout ratio should be. a. True b. False Page 2 of 7 740 words an English (United States
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