Chapter 6-8 Test Questions

Finance Quiz 6‏
|Question 1 |1 points |Save |
| |Dividends per share divided by earnings per share equal the dividend payout ratio. | | | | |
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| |[pic] |True | | | | | |
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|Question 2 |1 points |Save |
| |Investor A owns 10% of the common stock of IDE Corporation. After IDE completes a 2-for-1 stock| | | | |
| |split, Investor A will own 20% of the common stock of the corporation. | | | | |
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| |[pic] |True | | | | | |

|Question 3 |1 points |Save |
| |From the shareholders' perspective, a stock repurchase has a potential tax advantage over the | | | | |
| |payment of a cash dividend. | | | | |
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